Foxconn, the world’s largest contract manufacturer, is aiming to begin exports to the Middle East and African countries by December from India as it begins talking to suppliers to set up base in the fastest growing smartphone market in the world.
The Taiwanese phone and electronics maker is stepping up expansion of its manufacturing facility in Sri City, Andhra Pradesh, while scouting for more locations including Tirupati in the same state, besides states of Tamil Nadu, Maharashtra and Delhi NCR. If the plan fructifies, Foxconn would be much ahead of Samsung’s target of exporting from India by 2020.
Part of the volumes may well come from Mukesh Ambani-owned Reliance Jio. Foxconn is talks with Reliance Jio to make the much-awaited 4G Volte feature phone in India. People aware of Jio’s plans say the first lot of nearly 18-20 million is likely to be brought in from original equipment manufacturers (OEMs) in China.
Industry insiders informed ET that Foxconn, which makes iPhones for Apple out of China, will accelerate discussions with several component suppliers – on and off talks have been on for a year – over next couple of months, now that the government has assured protection to local manufacturing through basic customs duty of 10 percent and created a roadmap for local production of components coupled with tax incentives and benefits.
By Baishakhi Dutta
