Foxconn a mobile phone manufacturing company is looking to expand its manufacturing and investments in India saying India has a bright future.
Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group and better known as Foxconn, is a Taiwanese multinational electronics contract manufacturer with its headquarters in Tucheng, New Taipei City.
Foxconn the phone manufacturing company from Taiwan says that they are looking to expand the presence of Foxconn in India and invest a lot more. Foxconn has its annual general meetingwhere the chairman of the firm, Liu Young-way said that coronavirus pandemic has impacted their previous organizations in the country but the chairman feels it is still a bright spot for the prospectus of the company.
Foxconn currently produces phones for 2 leading phone companies, Xiaomi and Apple. For Apple it just produces the selected models and not all of them. The chairman also mentioned that they may announce new investment in India and expansion plans in the coming months.
Taiwan’s Foxconn has already announced that it is planning further investment in India and the details of it might soon come to public notice. Foxconn is one of the world’s largest contract manufacturers of phones and says that the Indian conditions are in favour for them to invest and construct manufacturing units.
The manufacturing of Foxconn in India was suspended in the month of March because of the entire nationwide lockdown because of the global health outbreak.
“We are fully pushing ahead with next steps there, and maybe in a few months’ time we can reveal on our website the next steps and report back to everyone. We’ll have further investment there,” Liu said taking about further investments in India and favoring the country for their next manufacturing hotspot.
Foxconn also had the lowest profit margin compared to the last 2 decades in the months of January, February and March. The main reason for this was the manufacturing in China was suspended in the month of January because of the whole coronavirus outbreak which first originated in the city of Wuhan in China. Not just the manufacturing, the demand of the products also fell and the most affected in the demand were the Apple products.
Foxconn last month also mentioned that the worst of the virus is over and that there were no infections to anyone in their manufacturing units in China and thus they have resumed operations in China much earlier. China plays a huge role in the manufacturing of Foxconn’s products as most of its industrial units and factories are located in China. Foxconn is seeking to make up virus-related losses at its China plants with resources from customers and local governments. Liu did not elaborate apart from saying such activity would take place gradually over several quarters.
The chairman Mr. Liu also said that the world is gearing up for the second wave of coronavirus and this definitely is a risk to its business. For the second quarter, Foxconn has said it expects revenue to show double-digit percentage growth versus January-March, though it will still likely book a single-digit decline from the same period a year earlier.
Foxconn was also involved in a controversy earlier in this year when a minister in the Indian state of Maharashtra claimed that Foxconn had backed out of a 5 billion dollar deal which was further decided to build manufacturing units in the state. While the contract manufacturer denied this, Foxconn also did not specify if it was going to invest in plants in the state of Maharashtra and construct factories here.
By Deepika Agarwal
