Foxconn to Make in India with $20-bn investment
Foxconn Technology, the maker of iPhone and iPad among others, is likely to invest about $20 billion (Rs 1.3 lakh crore) in India, sources said on Wednesday.business Updated: Jul 08, 2015 23:46 IST
Foxconn Technology, the maker of iPhone and iPad among others, is likely to invest about $20 billion (Rs 1.3 lakh crore) in India, sources said on Wednesday.
There are also speculations that the Taiwanese electronic component manufacturer will make iPhone in India, a move that will lower the product’s price in the country, and help take on Samsung and local players such as Micromax. Foxconn also makes components for companies, among them Sony, Xiaomi and Acer.
The move, in line with Prime Minister Narendra Modi’s signature Make in India campaign, is also likely to help India take on China, especially in the area of manufacturing of technological products, and comes at a time when the neighbour is grappling with a slowdown.
Foxconn founder and chairman Terry Gou is expected to meet communications minister Ravi Shankar Prasad on Friday. Immediately after landing in India on Wednesday, Gou met executives of Indian start-ups to evaluate options of possible investments, according to sources.
“I cannot comment about Gou, but we are here and a delegation is scheduled to meet officials for business opportunities,” Simon Hsing, spoksperson for chairman and CEO Foxconn, told HT.
A 40-member delegation from Foxconn will also visit various ministries and states’ government officials to speed up and coordinate the setting up various projects, and to sign agreements.
On Thursday, three teams from Foxconn are likely to visit Andhra Pradesh, Gujarat and Telengana to finalise land buy for the technology park. A core team has already met Ajay Kumar, joint secretary, department of IT. “A team from Foxconn has met the department of IT officials, including me…it is too premature to discuss what they want to do in India, they had some queries about Digital India,” said Kumar.
According to company sources, the investment was set to be announced during the Digital India week launched by Prime Minister Narendra Modi on July 1, but was put off since Gou could not attend the event.
The company plans to primarily invest in setting up a technology park (estimated to cost about $5 billion), according to sources. The other investments include that in Indian and foreign mobile phone companies for manufacturing mobile display screens, in an Indian TV maker for making thin film transistor (TFT) for high-definition TVs. It is also in talks with Adani Group and Snapdeal and Flipkart for hawking products manufactured in India along with its partners.
It will be Foxconn’s second innings in India, which trades under the name of Hon Hai Precision Industry Co Ltd after its venture with Nokia earlier.