Fox­conn eyes a new fac­tory in North In­dia

Electronics Bazaar - - Industry News -

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.

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