Foxconn explores Indian opportunities
TAIPEI — Foxconn Technology Group Chairman Terry Gou is in India to explore possible deals in one of the world’s fastest-growing economies, a company spokesman said July 9.
Gou’s visit comes at a time when Chinese manufacturing costs are rising and growth is slowing, and when Indian Prime Minister Narendra Modi is aggressively courting foreign investment.
“Chairman Gou is here to assess and explore potential business opportunities,” Foxconn spokesman Simon Hsing told the Nikkei Asian Review on Thursday, adding that Gou is expected to meet with local businesses and government officials.
The executive arrived in India on Wednesday and will leave on the weekend, according to Hsing. However, Hsing declined to provide more details about the trip and would not comment on potential investment projects reported by the Indian press. The Hindustan Times, citing local sources, reported late Wednesday that the key iPhone assembler is expected to invest $20 billion in India, $5 billion of which would go into a technology park.
The Taiwanese manufacturing powerhouse has been working with Chinese e-commerce leader Alibaba Group and Japanese telecommunications group SoftBank to establish a foothold in the Indian market.
Gou told shareholders in June that Foxconn and Alibaba are injecting funds into a major Indian e-commerce leader, possibly referring to Snapdeal, which secured $627 million from SoftBank last year.
The three tech giants also appear to be collaborating on helping Micromax, India’s leading smartphone supplier, with mass production.
Separately, Foxconn and SoftBank formed a joint venture with Indian conglomerate Bharti Enterprises in June to tap the solar and wind energy markets. Also Foxconn is in talks with India’s Adani Group to develop solar energy and set up electronics manufacturing facilities. It is also exploring the possibility of investing in Flipkart, another e-commerce startup.
Foxconn is coming off a strong second quarter, with its revenue growing 11% to a record 972.66 billion New Taiwan dollars (US$31.3 billion), according to a company statement released Thursday.