Foxconn's next India facility to be in Navi Mumbai


21 Jun 2013
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Foxconn is planning to set up its next manufacturing factory in India — in Navi Mumbai — which will be the first plant from the contract producer in Maharashtra, but will be separate from the $5 billion investment committed under an MoU with the state signed last year.

Sources familiar with the plans of the world’s largest contract manufacturer said that Foxconn's greenfield unit in Navi Mumbai will entail an initial investment of $20-30 million, from where it will start by making mobile phones, and gradually move on to other products.

"The Navi Mumbai plant will be set up by early next year, with a target capacity of about 2 million a month," a senior industry executive said, asking not to be named.

"To start with, mobile phones will be made, which is the high volume category in India, followed by mechanics design," this person added. An email sent to Foxconn Technology Group did not elicit any response till press time on Thursday.

In August last year, Foxconn Group chairman Terry Gou signed an MoU with the Maharashtra government for investing $5 billion (about Rs 34,000 crore) in the state to set up multiple manufacturing facilities for products including iPhones, tablets, spread over five years.

The investment plan would have generated a minimum of 50,000 jobs in the state. However, with a year down, the first investments under the agreement are yet to come. The Navi Mumbai plant will be counted as a separate investment, another source said.

Foxconn entered India with its first manufacturing facility as a supplier to Nokia in the Sriperumbudur SEZ in Chennai several years ago, but it had to shut down the 300-acre facility due to labour issues coupled with Nokia stopping production of phones.

The Taiwanese contract manufacturer re-entered the world's fastest growing smartphone market last year with a mobile phone assembly plant in Sri City, Andhra Pradesh, which it expanded to five plants with a total capacity of about 12-13 million a year. By the end of the year, this capacity will be doubled, EThad reported earlier.

After restarting operations — which happened post the government's Make in India initiative — Foxconn has invested about $600 million so far, which includes its investments in Snapdeal and messaging app Hike.

"Since last year, we have restarted operations and right now we're finalising the 2017 plan — there will be more expansion," Foxconn's head of India operations Josh Foulger said a fortnight ago.

"In semiconductors, the industry is looking at assembly, test, mark, and pack (ATMP), which includes 21 component categories that makes it attractive for companies like Foxconn and other suppliers to support this ecosystem," Foulger said.

Foxconn's next India facility to be in Navi Mumbai - ET Telecom
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