Foxconn to start making mobiles from Maharashtra later this year

However, its overall $5-b investment plans yet to see substantive moves; co says will consider investments in India when they make commercial sense

Wait for global electronic manufacturing giant, Foxconn, to kickstart its $5-billion investment plan in Maharashtra is getting longer. After completing 10 months and 20 days since it signed a Memorandum of Understanding (MoU) with the state government, Foxconn is yet to make substantive moves including submission of its application for land for its R&D and manufacturing facility. This is despite notification of 2,000 acres land in Khopoli (in Raigad district) and 600 acres in Chakan, Talegaon (in Pune district).

Besides, the company, which has taken on lease 1,50,000 sq ft at Mhape, Navi Mumbai, is yet to start the production of mobile phones. Earlier, Foxconn had indicated to the government officials had earlier given the deadline of March and later shifted to June this year.

In an e-mail response, a spokesperson for Foxconn Technology Group told Business Standard, “Foxconn intends to make, underscore the company's commitment to the country. Our significant plans in India will be rolled out in phases over the next five years. This includes a pilot site in Maharashtra, which will begin manufacturing mobile phones later this year. Foxconn is working closely with the government of the state of Maharashtra, and welcome and support the government's efforts to continuously enhance the competitiveness of the technology and consumer electronics sector.”

“We will continue to consider investments in India when they make sense commercially and when they are consistent with the needs of our customers. Details regarding any new investments will only be announced once decisions have been made and all necessary approvals have been received,” the spokesperson said.

Foxconn's statement is quite crucial especially when its recent push to pursue investment in Odisha and its talks for the takeover of Nokia plant in Tamil Nadu has made the BJP led government in Maharashtra quite restless. 

Interestingly, Maharashtra Industrial Development Corporation (MIDC) official confirmed that it awaits formal application for land from Foxconn and also communication with regard to the commencement of production of mobile phones from Navi Mumbai facility.

“Foxconn's strategy has always been driven by the needs of our customers, and the company has developed a holistic framework to serve our customers and their respective consumers in the Big Data and Internet of Things era. Our continued investment in our traditional markets and our expansion globally is critical to our ability to meet the demands of our customers and the overall development of our company,” the spokesperson said.

The spokesperson however, said as a long-term investor and partner to the local communities where we operate, Foxconn is committed to collaborating with its partners in India to support the sustainable development of India's technology and manufacturing industry.

“Foxconn believes that economic growth is accelerating internationally in many areas in which our company is very familiar. One of the key global growth markets is India, where we have had a presence for over eight years and where we have amassed a substantial amount of in-market knowledge and expertise. We have significant plans for India and we see huge potential in the country as the government pushes ahead with the "Make in India", "Digital India", "Skill India" and "Clean India" national programs, and we are encouraged by the productive dialogue that we have had with key stakeholders, including relevant government officials and industry partners,” the spokesperson noted.

A case file

- Foxconn signed an MoU on August 8 last year for $5 billion investment in phases in Maharashtra for R&D and manufacturing facility

- MIDC notified 2000 acre in Khopoli and 600 acre in Chakan, Talegaon

- However, the company it is committed to collaborating with its partners in India to support the sustainable development of India's technology and manufacturing industry

- Notes it has significant plans for India and sees huge potential to partner in Make in India, Digital India, Skill India and Clean India