Foxconn To Manufacture ‘Made in India’ iPhones in Maharashtra With $10B Investment
Foxconn, Taiwan based contract electronics manufacturer, and chief supplier of Apple has chosen Maharashtra to manufacture their ‘Made in India’ iPhones. As per reports coming in, Foxconn will spend $10 billion to create a massive manufacturing plant, which would be spread across 1200 acres.
Reportedly, Foxconn has finalized the location of this plant as well, and they are waiting for final Govt. approval before announcing this mega-deal.
Last year, we had speculated that iPhones would be soon manufactured in India by Foxconn, but later no concrete news came out of this. However, this development is almost confirmed now.
It will take around 18 months to ship out the first iPhone from this facility, and Foxconn will only manufacture Apple products here. This location in Maharashtra was chosen after considering several states for the location.
In August last year, Foxconn had committed $5 billion investment in Maharashtra over the next 5 years. With this recent iPhone facility, total investment promised by Foxconn in Maharashtra alone has swelled to $15 billion (Rs 1,00,000 crore) which is phenomenal to say the least.
As far as India is concerned, this can be a described as a huge coup, a new beginning, as Foxconn had traditionally chosen China for manufacturing Apple products since long. However, with the emergence of ‘Make in India’ program by PM Modi led BJP Govt., India has received attention from all over the world, especially from the manufacturing sector; and this decision by Apple & Foxconn to start manufacturing in India is yet another victory for India.
Factors Supporting Apple Manufacturing in India
Last year in November, Govt. had allowed phone manufacturers to sell their products directly to Indian consumers (using Internet), only if they manufacture their products inside India.
This was announced largely to attract manufacturing into India, and to create a ‘Make in India’ brand. This can be one of the reasons Apple and Foxconn has decided to open up manufacturing units in Maharashtra.
Besides, Apple has already requested Indian Govt. for setting up their own retail stores to capture offline market as well. Indian Govt. can relax the 30% local sourcing rule for Apple in this case, and this can be another reason for Foxconn to finally set up their manufacturing unit.
Some of the exclusive manufacturing components of Apple products can now be outsourced, and then assembled in India so that they have hold over both online and offline sales channels.
And, Apple’s decision to set up their first offshore development center in Hyderabad may be another reason why their manufacturing unit is also coming in Maharashtra.
So, in the next 18 months, iPhones would soon have a ‘Made in India’ label on them, and this would be one of the landmark moments for Indian manufacturing history.
Some recent Foxconn announcements related with Make in India vision: