Foxconn will direct investments of $500 million to establish enterprises in the southern Indian state of Telangana.
Source: Pixabay.com
This decision is the latest strategic step in the framework of Apple’s key partner’s contract proposals. Currently, the company is implementing a strategy to expand its base in the South Asian market.
K.T. Rama Rao, Minister of Information Technology of Telangana, wrote on his Twitter page that thanks to investments from Foxconn, it is possible to create 25,000 direct jobs at the first stage of the disbursement of financing.
Foxconn, which already manufactures iPhones in India, won the tender for the production of AirPods in this country. Local media reports that the company has also acquired a plot of land in Bangalore. The value of this transaction was $37 million.
The program of Indian Prime Minister Narendra Modi, which is a financial incentive plan for the development of the manufacturing sector, has contributed to the revitalization of Foxconn, Wistron, and Pegatron in this country.
The history of Foxconn’s presence in India began in 2006. The company was ahead of many of its competitors in terms of entering the Indian market. Yang Liu, Chairman of the Foxconn Management Board, says that for more than 15 years, the firm has managed to accumulate a lot of experience in managing local employees, the supply process, and logistics. According to him, this experience is an important competitive advantage of the company, which is allowed to develop faster than the pace that is observed in the Indian market.
Yang Liu also announced his intention to increase production volumes at Indian enterprises.
India currently has a population of 1.4 billion people. This means that the local market is a promising space for the sale of medium and high-end products. For companies, this circumstance is a kind of evidence of the need to increase production volumes against the background of guaranteed demand provided by a high population.
The growing interest in the Indian market from Apple’s manufacturing partners is evident at a time when the iPhone manufacturer is trying to expand its production infrastructure beyond China.
According to JP Morgan analysts, Apple, which opened its first two retail stores in India last month, intends to increase iPhone production at local sites to 25% of the total global volume by 2025.
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