Taipei, Taiwan-based Hon Hai Precision Industry Co., the world's largest contract electronics maker, is likely to sign a deal next month with the government of Maharashtra to invest in the western Indian state, according to the Economic Times of the South Asian country.
In a report posted on its website on Sunday, the Economic Times said executives of Hon Hai, also known as Foxconn on the global market, met with Maharashtra officials earlier this month, including chief minister Devendra Fadnavis.
Citing sources close to the deal, the report said Hon Hai has told the Maharashtra authorities it will build a plant in the special economic zone of the Jawaharlal Nehru Port Trust.
The sources said Hon Hai has already bid for a 45 acre plot of land in the economic zone for the new plant, although the company said it would need an additional 200 acres eventually for the investment deal.
According to the report, Hon Hai Chairman Terry Gou (???) is scheduled to visit India next month to sign a formal deal. In 2015, Hon Hai said it would invest US$5 billion in Maharashtra to build a plant for mobile phones and components, which is expected to create 50,000 jobs in the state by 2020, the report said.
While Hon Hai is already rolling out television sets, Xiaomi and Nokia branded phones in Andhra Pradesh and Tamil Nadu, two states in India, its investment plan in Maharashtra had made little progress, the report added.
In the wake of Hon Hai's plan to build a plant in the state's special economic zone, Fadnavis wrote to Minister of Transport and Highways Nitin Gadkari and asked him to allot 200 acres of land to the Taiwanese investor, the report indicated.
The report said Hon Hai is also seeking additional land outside the special economic zone in the state.
Echoing Indian Prime Minister Narendra Modi's ambitious "Make in India" initiative, Hon Hai has embarked on a project to establish 10-12 facilities in India by 2020 as part of the company's efforts to extend its global reach in electronics manufacturing, while seeking partners to invest in a wide range of businesses such as e-commerce, mobile Internet services and renewable energy.
Currently, Hon Hai operates a broad production base in China with a workforce of about 1 million, while the world's largest contract electronics maker is also investing US$10 billion to build an advanced flat panel compound in Wisconsin, the United States.
Source: Focus Taiwan News Channel