Conglomerate Adani Enterprises Ltd. said on Tuesday it was in discussions with Taiwan's Foxconn, the trade name for Hon Hai Precision Industry Co Ltd., for a joint venture, though no agreement has been signed.
The company is planning a joint venture worth $5 billion with Foxconn to build components for companies like Apple Inc. and Amazon, said a report in The Economic Times. If the deal goes through, it would be the largest foreign investment in local manufacturing under Prime Minister Narendra Modi's 'Make in India' programme.
Foxconn is looking to start manufacturing as many as 400 million mobile phones in India, the report said. "We are at the discussion stage only and have not signed any agreement which requires disclosure," Adani said in a filing.
Foxconn Chairman Terry Gou was reported as saying that his company will work with Adani. However, he was also quoted as saying that Foxconn is in talks with companies such as Micromax and Snapdeal.
Foxconn to work with Adani; Adani is an important local partner, says Chairman.— Press Trust of India (@PTI_News) August 4, 2015
Foxconn to have multiple local partners; in talks with Adani, Micromax, Snapdeal: Chairman.— Press Trust of India (@PTI_News) August 4, 2015
Foxconn is the world's largest contract maker of electronic products and counts companies like Apple, BlackBerry, Motorola, Huawei and Xiaomi as clients.
A return of Foxconn — which was forced to shut up shop in India last year after client Nokia closed — would be a major victory for India, which badly needs to turn its tech boom into a manufacturing and employment boost.
Modi's government has sought to reboot manufacturing, but the country is yet to rival China, particularly in technology where most factories will likely be assembly units to begin with.
(With agency inputs)