(Yicai Global) Dec. 15 -- Hon Hai Precision Industry Co. [TW:2317] (Foxconn Technology Group), the world's largest electronic device contract manufacturer, plans to build a 200-acre plant in Jawaharlal Nehru Port Trust's special economic zone.
The Taiwanese group intends to invest INR60 billion (USD937 million) in the project, which will create 40,000 jobs, The Economic Times reported yesterday.
A Foxconn investment in the JNPT would indicate that the company is pursuing the Indian market more aggressively. The group is mulling exporting to the Middle East and Africa from India and has kicked off talks with relevant suppliers.
The investment in JNPT indicates that Foxconn will enter the Indian market more progressively, and may build its first plant in countries neighboring China. By starting the trade with India, the firm is also considering export trade with the Middle East and Africa and has negotiated with relevant suppliers.
Building a base in the world's fastest growing smartphone market and then entering the production chain of local and export markets is one of the purposes of this port investment, Huanqiu quoted experts as saying.
Foxconn plans to double its production capacity in India this fiscal year, so it is looking for places to build more factories. It aims to build a plant in Navi Mumbai with an initial investment of USD20 million to USD30 million to make handsets and other products.
Foxconn has invested more than USD600 million in India, excluding the nearly USD5 billion it promised in partnership with the Maharashtra government in 2015.