Samsung: Growth Opportunities in Smart Cities

Smart Cities in India:

Urbanization in India is expected to reach 40% with over 600 million people living in urban areas contributing
to 75% of GDP by 2030. To meet the burgeoning infrastructure needs, Ministry of Urban Development (MoUD)
launched the development of 100 smart cities in India over 2015–20 timeframe by encouraging aspiring cities
to move away from “one size fits all” approach and developing their own concept, vision, mission and plan
customized for the local context. To assist aspiring smart cities the mission identified illustrative smart city
characteristics and solutions (Exhibit 1).

Till date 60 smart city proposals have been selected and the total cost of projects across these cities is
estimated at ~131,762 Cr across Area Based Development and Pan City Solutions (Exhibit 2). Area based
development typically include multiple interventions across a chosen area (mostly activities such as
landscaping, core city infrastructure such as sewer, drainage, power etc.) while Pan City Solutions typically
include one intervention across the city (mostly activities such as intelligent traffic management, CCTV
surveillance, intelligent street lighting etc.)
Despite the significant funding available from central and state government, over 50% funds still need to be
mobilized. Balance funds are expected to be mobilized from investors, financing institutions, PPP model equity
infusion etc. Through the PPP route, Government is partnering with OEMs/Smart City integrators, who are
pitching their products and services to bag tenders and grow their smart cities business (Exhibit 3). As of
Mar’17, 46 PPP projects worth INR 4208 Cr are at various stages of tendering process1

Samsung Context:
Samsung is one of the world's leading technology companies, specializing in IT & Mobile products, consumer
electronics, semiconductors, memory, and system integration. Samsung Electronics commenced its operations
in India in December 1995 and is one of the leading providers of Telecom products, Consumer Electronics, IT
and in the Indian market.

Samsung products such as phones, tablets, display panels and other products can find multiple use cases
across smart city application areas such Command & Control Centers, Mobility, E-Governance etc. For e.g.
Within Command & Control Centers, Samsung’s products can find ready application across CCTV surveillance in
sectors such as Border surveillance, Safe City & Police, Critical Infrastructure (Oil Refineries, Airports, Railway
Stations, Ports, and Security Establishments), Hospitality and Residential etc. (Exhibit 4). Similarly, within
mobility Samsung can become an OEM of choice offering its devices in areas such as Traffic Management,
Smart Parking, Intelligent Public Transport etc.

Project Challenge
The main task of this phase of the project is to evaluate the segments within the Smart Cities opportunity
where Samsung can enter in the next 1-2 years with a clear implementation roadmap. The key question that
the participants should answer is:

1. What is the broad spectrum of opportunities for Samsung across products across Smart City Solutions?
(Pipeline tenders, potential, competitive intensity,...)
Exhibit 1: Illustrative list of smart city solutions captured by MoUD in the smart city mission
document (Non-Exhaustive)

Exhibit 2: Planned smart city investments in India1

1: Ministry of Urban Development

Exhibit 3: Illustrative List of Services & Products that are being offered by OEMs/Smart City
Integrators

Exhibit 4: Illustrative-Use Cases and drivers of Video Surveillance across sectors