Committed to investing $5 billion in Maharashtra: Foxconn
, ET Bureau|
Feb 16, 2018, 11.46 PM IST
NEW DELHI: Foxconn, the world’s largest contract manufacturer, has said that it will keep its commitment of investing $5 billion in Maharashtra as outlined in a MoU signed in 2015.
Foxconn executives spoke to officials in the Maharashtra government, including industries minister Subhash Desai on Friday morning and reiterated their intention to invest in the state, and to ensure creation of 50,000 jobs by 2020, as per the terms of the MoU.
“We will fulfil our commitment that we made back in 2015, and we are committed to the state,” said Simon Hsing, official spokesman of Taiwanbased Foxconn, which was earlier known as Hon Hai Precision Industry Co.
“After this week — the Chinese New Year — we will share our action plan with the minister. Our investment is towards business operations in electronic manufacturing, but we need to have good communication with government officers so they don’t get any incorrect impression that we are not committed,” he said.
Foxconn had signed an MoU with the Maharashtra government in August 2015 to set up a mobile phone and parts manufacturing factory over 1,500 acres near Mumbai-Pune expressway. At that time, it was the single largest proposal of FDI in western India. However, since then, the company has not made any formal announcement of investment in the country or the state.
“Foxconn has not come and I feel as bad as you do. But we do not regret it; we are discussing with other companies,” the state industries minister Subhash Desai said on Thursday, indicating that the Taiwanese contract manufacturer might go back on its promise to invest in the state.
Meanwhile, Foxconn’s India manufacturing arm — Rising Stars Mobile India — has set up factories in Sri City, Andhra Pradesh and Sriperumbudur, Chennai, to make mobile phones and television panels, respectively.
“We have been doing investments. Our investments are not for announcement but rather for a business operation for our customers,” Hsing said. Foxconn India’s head of operations, Josh Foulger, had said in December 2016 that the company had invested about $600 million till then, including its investments in Hike and Snapdeal.
Foxconn executives spoke to officials in the Maharashtra government, including industries minister Subhash Desai on Friday morning and reiterated their intention to invest in the state, and to ensure creation of 50,000 jobs by 2020, as per the terms of the MoU.
“We will fulfil our commitment that we made back in 2015, and we are committed to the state,” said Simon Hsing, official spokesman of Taiwanbased Foxconn, which was earlier known as Hon Hai Precision Industry Co.
“After this week — the Chinese New Year — we will share our action plan with the minister. Our investment is towards business operations in electronic manufacturing, but we need to have good communication with government officers so they don’t get any incorrect impression that we are not committed,” he said.
Foxconn had signed an MoU with the Maharashtra government in August 2015 to set up a mobile phone and parts manufacturing factory over 1,500 acres near Mumbai-Pune expressway. At that time, it was the single largest proposal of FDI in western India. However, since then, the company has not made any formal announcement of investment in the country or the state.
“Foxconn has not come and I feel as bad as you do. But we do not regret it; we are discussing with other companies,” the state industries minister Subhash Desai said on Thursday, indicating that the Taiwanese contract manufacturer might go back on its promise to invest in the state.
Meanwhile, Foxconn’s India manufacturing arm — Rising Stars Mobile India — has set up factories in Sri City, Andhra Pradesh and Sriperumbudur, Chennai, to make mobile phones and television panels, respectively.
“We have been doing investments. Our investments are not for announcement but rather for a business operation for our customers,” Hsing said. Foxconn India’s head of operations, Josh Foulger, had said in December 2016 that the company had invested about $600 million till then, including its investments in Hike and Snapdeal.
