Foxconn has big investment plans for India: report
The Foxconn Technology Group’s ( ) 10-year investment plan in India could make it the biggest foreign investor in the Indian government’s “Make in India” program so far, the Economic Times of India reported Wednesday.
The daily reported that Foxconn, known in Taiwan as Hon Hai Precision Industry Co. ( ), is ready to invest over US$2 billion to set up factories in India over the next five years to produce mobile devices, TVs, electronic products, batteries and key electronic components.
“The manufacturer of the iconic Apple iPhones is also planning to set up one or more data centers and some fab units over the next 10 years,” the report said.
Foxconn Chairman Terry Gou ( ) was quoted as saying at a press conference in New Delhi that India offers “good investment opportunities” for a 5-10 year horizon for Foxconn, which sees India as a manufacturing, expansion and export base.
According to the report, Gou was in India for a three- day visit and made a two and a half hour presentation on Monday night after a dinner meeting with Indian Prime Minister Narendra Modi. He met with Telecom Minister Ravi Shankar Prasad on Tuesday.
Gou said the company would look at producing phones, TVs, precision machines, batteries, data centers, storage, and switch routers, among other things, and would seek out local partners for different projects, which will be set up in stages.
Gou also revealed his wish list for investing in India, including tariff protection to encourage domestic manufacturing, tax predictability for the next several years and financial incentives to pull investments from China.
At the press conference, Gou disclosed Foxconn’s partners in India, including e-commerce player Snapdeal, India’s No. 2 mobile phone vendor Micromax and refurbished goods e-tailer Greendust.
He also said he considers the Adani Group as a partner.
The Indian daily reported that in a statement to stock exchanges, Adani Group flagship unit Adani Enterprises said it was in talks with Foxconn on a manufacturing joint venture but no agreement had been signed as yet.
The filing did not specify the nature of the joint venture or the products that it will manufacture, but the report cited sources as saying that “Foxconn could locate a plant and data center at Adani’s SEZ in Mundra and use the Adani Port to bring in heavy machinery.”