Foxconn eyes a new factory in North India
The Taiwan based electronics contract manufacturer is upbeat about its India operations.
The company is in expansion mode and looking for bigger opportunities to consolidate its presence in the country.
Recently, a senior executive at Foxconn mentioned that the company is looking to open a factory in North India.
Earlier this year, Foxconn committed to investing around
` 320 billion in India and this plant could be the first step in that direction. For Foxconn, mobile
phones and televisions are the key focus areas for 2018.
“We have grown 500 per cent last year, and next year we are confident of growing 100 per cent,” company sources revealed. The electronics manufacturer is bullish about its India operations because of the government’s phased manufacturing programme and feels it is one of the key enablers of the government’s Make in India initiative.
When asked if the company had faced any hurdles due to GST or demonetisation, the executive replied that its target revenue was on track and that GST, demonetisation and Aadhaar are steps the Indian government is taking to maintain traceability and confidentiality in the system.
The source also said that the government is doing its bit for the electronics industry and that ‘net zero imports by 2020’ is practically achievable. “Recently, the government has launched its MEIS (Merchandise Exports from India Scheme), which will please all the manufacturers because the incentives on exports have been increased from 2 per cent to 4 per cent,” the source at Foxconn added.
This incentive has just been announced and it will take some time to become operational.
On the other hand, media reports suggest that Foxconn is backtracking on its ambitious project in Maharashtra. Recently, the state industries minister, Subhash Desai has said that there has been no progress in investments from Foxconn in Maharashtra. Foxconn sources meanwhile denied any such backtracking and mentioned that currently, the company has two factories running in Maharashtra.