Apple's Biggest Supplier Foxconn Pulled Out Of A $5 Billion Investment Plan In India

One of Apple’s biggest suppliers Foxconn won’t set up manufacturing plants in Maharashtra, India because it failed to secure a deal for the piece of land for the plants. According to the Minister of industries at the state of Maharashtra, Subhash Desai, even though Foxconn’s exit will have likely any significant impact on Indian consumers, it would affect manufacturers of gadgets heavily. “Many other smartphone manufacturing firms have also entered the market and are doing well”, Desi added.

Desi also said that the Taiwanese electronics giant had been looking for a feasible land to set up its manufacturing plants in the past five years. However, although it was interested in several pieces of land, the firm failed to acquire one at terms that would work for it.

“Foxconn is in no position to move ahead with its decision to invest in the state due to some internal conflicts. The decision will not affect the end users, although, other gadget manufacturers might feel the heat. This is a one-off issue since other manufacturers have invested in Maharashtra and are doing quite well”, said Desai.

Back in 2015, Foxconn showed its interest in setting up manufacturing plants in India in the light of Apple looking to set up multiple assembly units in the country. As per its Memorandum of Understanding, the company agreed to a $5 billion investment in the state, equivalent to around Rs. 35,740 crores over the course of five years. However, even though both sides already had several meetings and the government offered multiple land parcels, the plan would never be executed. 

Originally, Foxconn was eyeing for a land parcel in Chakan-Telegaon area closed to Pune city of Maharashtra, but the government instead offered a piece of land at a different location called Khopoli. The company was also offered a land parcel covered more than 500 acres at Palghar. Later, the company planned to set up a manufacturing plant at Jawaharlal Nehru Port Trust in Navi Mumbai and had already submitted a bid for the piece of land with an area of 44 acres. However, it ended up being acquired by the global terminal operator DP World, according to an official from the industries department.