Foxconn looking at manufacturing in India
In the first major endorsement of the government’s ‘Make in India’ campaign by a global major, Taiwanbased Foxconn, the world’s largest electronics contract manufacturing giant, is looking at manufacturing items ranging from solar power equipment to mobile handsets to smart televisions in India.
Foxconn makes devices for brands such as Apple, Huawei, Xiaomi, BlackBerry and Motorola.
Addressing a late-night, hurriedlycalled press conference here, Terry Gou, chairman and chief executive of Foxconn Technology Group, said the company wasn’t only looking at “assembling” in the country, but bringing the entire “supply chain to India” and looking at a 10-year horizon.
Despite persistent queries, Gou did not reveal the planned investment, saying the numbers weren’t final yet. Also, he didn’t disclose whether Foxconn had zeroed in on a location for its operations in India.
He said Foxconn was looking at 1012 manufacturing units in India, adding the cumulative investment could be much more than the speculated $2 billion. Gou, however, left the ball in the government’s court, saying the company was willing to make a huge investment but the Centre had to provide the “infrastructure” and take care of other issues such as the supply chain, logistics and land.
Foxconn had to suspend operations at a facility that made Nokia phones on the outskirts of Chennai, three months after Nokia shut its factory nearby, after being caught in tax litigation with the Centre.
“We are looking at a 10-year plan but there are too many barriers to overcome. So, we will be careful in making any specific announcement,” Gou said, adding Foxconn would look at exporting from India to neighbouring countries. “We are looking at India for the long term.”
Though Foxconn already has partners in Snapdeal, Micromax and recycling firm GreenDust in India, it has roped in the Adani group to lend domestic know-how to its India operations. It is speculated Adani Enterprises, the flagship company of the Adani Group, is in talks with Foxconn to form a joint venture (JV).
In a BSE filing, Adani Enterprises said: “We are at the discussion stage and have not signed any agreement that requires disclosure under clause 36 of the Listing Agreement.” The company did not clarify on the nature of the JV or the products to be manufactured.
Sources said Adani Enterprises would partner Foxconn to set up a facility to manufacture phones, including the Apple iPhone, at Adani’s special economic zone in Mundra, Gujarat, adding the land would be provided by the company. On Tuesday, the company stock rose 11.32 per cent due to the buzz on the deal, closing at ~94.40.
Senior Foxconn officials met government officials in New Delhi to discuss the company’s India plans, with Gou making a long presentation before government officials.