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Published on : Jun 24, 2015

Foxconn Technology Group, the largest global contract manufacture will manufacture phones for Chinese brand Xiaomi. In India, the contract manufacturer will start its work at an old Pepsi building located in Sri City in Andhra Pradesh. The move has been after Foxconn was forced to close three of its plants in Tamil Nadu. According to the reports, the company will initially manufacture just 10,000 phones per day at its Sri City manufacturing unit. However, it aims to make India a key manufacturing base in the near future, comparable with China. 

Foxconn makes Kindles for Amazon and is the contract manufacturer of iPads and iPhones for Apple. In a move to expand its manufacturing units in India, the company is planning to invest around US$2 billion over the span of next five years and establish 10-12 factories in the country, each of them employing at least 10,000 people. 

The company, headquartered in Taiwan has an impressive client list that includes Dell, Cisco, Microsoft, and Hewlett-Packard. An insider revealed that the company aims to make products such as televisions, tablets, routers, set-top boxes, printers, and smartphones in India. However, the contract manufacturer will not make iPhone in India as it requires huge investment and larger supplier base for the high-precision equipment used. Presently, it is focussing on assembly of phones. The company is seriously planning regarding expanding its manufacturing base in India as it is holding talks with several state governments. Maharashtra, Andhra Pradesh, Gujarat, Karnataka, Telangana, and Uttar Pradesh have figured as the priority states for the company. 

Spokesperson from Xiaomi India has mentioned that the smartphone manufacturer has not yet finalized on its plans regarding local manufacturing. Both Foxconn and Xiaomi has declined to comment anything on the latest developments.