As several companies from different business verticals plan to jump into India after the invite “MAKE IN INDIA” urged by the central government; Foxconn is amongst the first ones to join the group. It is quite a known fact that the Taiwanese contract electronic goods manufacturer once made cellphones for Nokia in the southern Indian state of Tamil Nadu.
Based on the latest news; the company is in fresh talks with government authorities for restarting operations at the plant.
The contract manufacturer has some 300 acres of industrial land which has a factory setup at Sriperumbudur near Chennai. Foxconn reported is in discussion with regards to converting the premises into a Domestic Tariff Area (DTA). This comes soon after the announcement of plans to invest $5 billion and signing of memorandum of understanding with the Maharashtra government. Hence, it looks like Foxconn has taken the invite quite serious and is planning to explore Indian grounds on technology developments.
It will be interesting to watch the future moves of the company as it stopped its manufacturing process in Chennai due to heavy load-shedding problems and labor issues that turned grim and affected the operations. It is worth noticing that just few days ago Sony India entered into a business understanding with Competition Team Technology (a part of Foxconn Group) for the manufacturing Bravia series televisions in India. The unit for the same is also located at Sriperumbudur.
Foxconn is eyeing to re-enter Tamil Nadu after the entries in Andhra Pradesh and Maharashtra
As Nokia is planning to re-enter its once favorite market for mobile phones with fresh offering of products, after its struggled Microsoft episode (it is predicted that new age android phones are on the way), it will be good for the Indian manufacturing sector that Foxconn starts with the Chennai unit. The Tamil Nadu government in the meanwhile has insured smooth operations as it seems to have found an effective solutions to the labor issues and interrupted power supply.