Contract manufacturer Foxconn is set to invest $2 billion in setting up electronics manufacturing plants in India over the next five years to feed the growing demand for smartphones, TVs and batteries.
The company is apparently planning to manufacture some 400 million handsets in India in that time period, only half of which will be for the Indian market, while the rest will be exported.
Terry Gou, Chairman and CEO of Foxconn, confirmed that he was in talks with the Adani Group and while he did not reveal any further details, reports suggest the two companies will partner to setup a plant in Mundra, Gujarat to manufacture Apple’s iPhone and iPad.
Foxconn isn’t just looking at manufacturing smartphones but also televisions and batteries in the country and is looking at India as a long-term investment destination.
While there’s a sudden demand for electronics manufactured in India, the Taiwanese company is also witnessing a slowdown in China’s manufacturing sector.
Setting up plants in India will help Foxconn get closer to a consumer base that’s expected to swell to many times its size in the upcoming years. Apart from assembling devices, the company also wants to play a larger role in supply chain.
Foxconn is also in talks with refurbished electronics marketplace Greendust who recycle and sell electronics. The company said it is in talks which if fruitful could lead to the Taiwanese company transferring technology to the Indian retailer.