No plans to man­u­fac­ture in In­dia in near fu­ture: Pe­ga­tron

The China Post - - LOCAL -

Tai­wan’s Pe­ga­tron Corp. ( ), a key sup­plier of Ap­ple Inc.’s iPhones, said Mon­day that it has no plans to set up oper­a­tions in In­dia in the near fu­ture and fol­low its big­ger ri­val Hon Hai Pre­ci­sion In­dus­try Co. ( ) into the mar­ket.

Pe­ga­tron ex­ec­u­tives vis­ited In­dia a few years ago to see if it wanted to build a fac­tory there, but con­di­tions were dif­fer­ent at the time and Pe­ga­tron de­cided to move its man­u­fac­tur­ing sites to China, Chief Ex­ec­u­tive Jason Cheng told an earn­ings brief­ing.

The com­pany has kept a close eye on the de­vel­op­ment of In­dia’s fast-grow­ing smart­phone mar­ket and de­ter­mined that man­u­fac­tur­ing in the coun­try would mainly tar­get do­mes­tic de­mand, con­tribut­ing less to ex­port mar­kets, and re­quire “co­op­er­a­tion with clients,” Cheng said.

The CEO noted that there re­main many things to con­sider about man­u­fac­tur­ing in In­dia, and the com­pany “does not have any spe­cific plans to share at present.”

Cheng’s re­marks came two days af­ter Hon Hai, known out­side Tai­wan as Fox­conn Tech­nol­ogy Group ( ) and a ma­jor sup­plier to Ap­ple, signed a pact with In­dia’s Ma­ha­rash­tra state to in­vest US$5 bil­lion over five years on a new elec­tron­ics man­u­fac­tur­ing fa­cil­ity.

The an­nounce­ment could help Fox­conn, which also counts Black­Berry, Xiaomi ( ) and Ama­zon as clients, counter ac­cel­er­at­ing wage in­fla­tion in China and bol­ster In­dian Prime Min­is­ter Naren­dra Modi’s “Make in In­dia” cam­paign, which aims to turn Asia’s third­largest econ­omy into a man­u­fac­tur­ing pow­er­house.

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