$2 bn boost for Make in India: Foxconn may set up units here, in JV talks with Adani

Foxconn, the trade name for Hon Hai Precision Industry Co Ltd, will invest in India as it builds a supply chain in the country, in a move that may help the country’s efforts to build a technology manufacturing base. The move is a big boost for prime minister Narendra Modi’s Make in India scheme. Taiwan-based Foxconn is the world’s largest contract maker of electronic products and counts Apple, Blackberry, Xiaomi and Amazon among clients. Founder and chairman said Terry Gou said on Tuesday he was looking at India with a more than ten years timeframe in mind, but had not firmed up investment figures yet. [caption id=“attachment_2379316” align=“alignleft” width=“380”]  Reuters[/caption] Gou told Reuters in May he aims to develop 10-12 facilities in India, including factories and data centres, by 2020. Adani Enterprises Ltd, meanwhile, has said it was in discussions with Foxconn for a joint venture, though no agreement had been signed. According to a television channel reported the $5 billion joint venture will build components for companies like Apple Inc and Amazon. “We are at the discussion stage only and have not signed any agreement which requires disclosure,” the company said in a filing to the Exchanges. The company, however did not clarify on the nature of the JV or the products that it will manufacture. But sources said that Adani Enterprises will partner with the Taiwan-based Foxconn to set up a facility to manufacture iPhones in India at Adani’s SEZ in Mundra, Gujarat and the land component will be provided by the company. Last month, Adani’s shareholders had cleared a proposal allowing the firm to raise up to Rs 6,000 crore through issuance of securities to sustain rapid business growth. The Gautam Adani-led company also aims to raise its borrowing limit to up to Rs 12,000 crore to keep pace with the expanding business operations. Though the company has not yet revealed it investment details, a report in The Economic Times, citing an unnamed government official said Foxconn will be investing $2 billion over the next five years. According to the official quoted, it will make some 400 million iPhone in India, half of which will be for the local market and the rest for exports. Earlier, the Maharashtra government had invited iPhone manufacturer Foxconn to scout for locations in the state for setting up iPhone unit. “Foxconn is sending a delegation of their officers to scout for locations in Maharashtra. We expect it to visit the state in a month’s time,” state industry minister Subhash Desai was quoted as saying in the media reports. During his China visit in May, chief minister Devendra Fadnavis had met representatives of the leading Taiwan-based electronics giant Foxconn. “Visited the leading electronic manufacturer Foxconn, had good meeting with the founder Terry Gou and his team,” Fadnavis had said. “Very happy to know from Terry that Foxconn is keen to invest in Maharashtra for data centres, mobile phones, tablets, television, etc. A detailed plan on proposed investments in Maharashtra for 2015-2017 too was presented by Foxconn. Had a great discussion on it,” the chief minister had said. With inputs from agencies