BUSINESS

Foxconn Betting Big on South India

By Shine Jacob
August 19, 2024 09:01 IST

Foxconn's business in India has grown to over $10 billion till 2024.

IMAGE: Karnataka Large and Medium Industries Minister M B Patil along with Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar felicitates Hon Hai Technology Group (Foxconn) Chairman Young Liu in Bengaluru, August 16, 2024. Photograph: ANI Photo
 

Two southern states -- Tamil Nadu and Karnataka -- on Saturday went all out to woo Young Liu, CEO and chairman of the Hon Hai Technology group (Foxconn), aiming to strengthen the group's existing investment in these states and explore opportunities.

The company reportedly said it was looking beyond smartphones and considering segments like information communication technology (ICT), electric vehicles and related battery infrastructure, and digital health in India.

The firm is also working on plans to set up a battery energy storage system unit in India, Liu said.

'We are also waiting to put our 3+3 future industry in India. I have been talking to the minister for industries here about how can we collaborate on BESS (Battery Energy Storage System) in Tamil Nadu,' Liu said.

The company is planning to come up with industrial parks and housing projects in Tamil Nadu.

IMAGE: Foxconn Chairman Young Liu with Tamil Nadu Chief Minister in Chennai, August 17, 2024. Photograph: ANI Photo

While the Tamil Nadu government inaugurated the first mega industrial housing project, spread over 20 acres, in India for 18,720 women employees of Foxconn, a supplier of Apple, at Vallam Vadagal near Chennai, Karnataka held strategic meetings with Liu to fast-track the Rs 22,000 crore (Rs 220 billion) Project Elephant, which involves establishing a mobile phone assembly plant.

This comes a day after Liu met Telangana Chief Minister A Revanth Reddy in Delhi on Friday, when he stated that Hyderabad had the potential to expand in all sectors and that he would visit the city with his team in the near future.

IMAGE: Young Liu and the Foxconn delegation meets with Telangana Chief Minister Revanth Reddy and state IT Minister D Sridhar Babu in New Delhi, August 16, 2024. Photograph: ANI Photo

Going a step ahead of others, Tamil Nadu Industries Minister T R B Rajaa not only received Liu at the airport but also drove him to the venue.

After a meeting with Liu last week, Prime Minister Narendra D Modi tweeted that the company had investment plans in Karnataka, Tamil Nadu and Andhra Pradesh.

For Project Elephant, the company has secured 300 acres in the ITIR Industrial Area, spanning Doddaballapura and Devanahalli taluk in Bengaluru Rural District.

Foxconn is the largest contract manufacturer of electronics globally and one of the largest employers worldwide. It is known for manufacturing iPhones, and its client base reportedly includes Apple, Google, Sony, Amazon, Dell, Microsoft, Cisco, and Intel.

IMAGE: Young Liu with Prime Minister Narendra D Modi in New Delhi, August 14, 2024. Photograph: ANI Photo

"Foxconn's largest footprint in India is in Tamil Nadu. The state's economic blueprint is active and attractive for technology investments," Liu said after Tamil Nadu Chief Minister M K Stalin inaugurated the Rs 706.5 crore (Rs 7.065 billion) housing project.

"Investment in Tamil Nadu has multiplied rapidly over the past few years. We have the largest female workforce in India. Foxconn has been our longstanding partner, and we are looking for further mutually beneficial collaboration," said Rajaa.

Essential amenities at the complex include potable water, stormwater drainage, solid waste management, rainwater harvesting, and solar energy use. Additionally, security is a top priority, with 1,170 CCTV cameras already installed.

Foxconn will take charge of kitchen operations, with a dining area designed to seat 4,000 people at once.

The project also includes spaces for recreational and outdoor activities, as well as a commercial area with a shopping complex and supermarket.

IMAGE: Siddaramaiah and Shivakumar with the Foxconn delegation led by Chairman Young Liu. Photograph: ANI Photo

Earlier in the day, the Karnataka government and Foxconn team reviewed the ongoing Rs 22,000 crore (Rs 220 billion) investment in the ITIR Industrial Area in Karnataka, where the company is establishing a major phone assembly plant on 300 acres.

'Foxconn's Project Elephant is an investment for the future of Karnataka. This initiative is of critical importance, and we assure that comprehensive support is being provided by all key departments within the state,' state Industries Minister M B Patil reportedly said.

'We look forward to working with Foxconn to make Project Elephant a resounding success and a model for future initiatives in Karnataka,' Patil added.

In Telangana, Bharat Rashtra Samithi Working President K T Rama Rao sought clarity from the state government on the status of plans by Foxconn to generate 100,000 jobs in Telangana.

Liu also said the firm's business in India has grown to over $10 billion till 2024 and the firm has invested $1.4 billion in India till date.

Photographs curated by Manisha Kotian/ Rediff.com
Feature Presentation: Ashish Narsale/Rediff.com

Shine Jacob
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