The company is the most lucrative and largest contract manufacturer in the world and manufactures products from Apple as well as other companies such as Xiaomi and Sony in its existing factories in India.
The new investments come as the company looks to expand its manufacturing footprint in India due to the rapid growth of the country’s electronics manufacturing business and strong sales. The groundbreaking ceremony in Hyderabad was attended by Telangana Minister of Industry and Trade KT Rama RaoSidney Lu, Chairman and CEO of Foxconn Inter-connect Technology, and other officials.
The planned electronics manufacturing plant in Kongara Kalan near Hyderabad is part of the Taiwanese company’s expansion strategy, the state government said. “To demonstrate ‘Telangana Speed’, I am pleased to announce today the groundbreaking of Foxconn’s first Telangana facility at Kongara Kalan. With an investment of over US$500 million, it aims to create 25,000 direct jobs in the first phase,” Rama Rao tweeted.
He said it was necessary to work in line with the confidence the Foxconn chairman had placed in Telangana. “…I would like to thank the Foxconn company for investing in Telangana,” the minister said.
The proposed facility will serve as a hub for Foxconn Interconnect Technology’s operations in Telangana and allow the company to expand its manufacturing capacity.
In addition to Foxconn, another Taiwanese conglomerate, Pegatron, has entered the Indian market. The world’s contract manufacturers are counting on the government’s production boost under the Make in India program, apart from the announced production-related incentives that should make it lucrative for companies to invest here.