Foxconn Technology, the world's largest contract manufacturer of electronic items, will reportedly start making 4G smartphones for the impending launch of Reliance Jio at its facility in Navi Mumbai from March.
The Taiwanese tech giant has acquired 200,000 sq ft on a sub-lease in Navi Mumbai's information technology & IT-enabled services zone for the facility, which will also be used to manufacture handsets for its existing client Chinese Xiaomi, an official of the state government's industries department told Business Standard.
Recently, Reliance Jio launched its 4G services, initially, for the employees of Mukesh Ambani-led Reliance Industries. The commercial launch of its services is expected in the next fiscal year.
The facility will mark Foxconn's first investment in Maharashtra after it had announced in August that it would invest $5 billion (roughly Rs 32,000 crore) in the state in the next five years. The state government had also agreed to allot 1,500 acre land for Foxconn.
However, Foxconn is yet to send a formal application for the allotment of 1,500 acres to set up research and development (R&D) and manufacturing facilities, the official said. The company was looking to have plants at Khopoli in Raigad district and Chakan-Talegaon in Pune district.
''Senior executives are expected to soon meet with officials of Maharashtra Industrial Development Corporation. MIDC will notify the necessary land after it receives Foxconn's proposal,'' the official added.
In October last year, the Maharashtra government led by chief minister Devendra Fadnavis had rolled out a range of incentives for Foxconn to set up manufacturing units in the state.
The state government had said that it would assist Foxconn in getting loans at preferred rates of interest, including a payment moratorium period of 10 years. Besides, the government will offer a subsidy on its total fixed capital investment, without a bar on the amount. Foxconn will also be eligible for 20% subsidy from the state government in addition to central government subsidies.
Foxconn, which is already making smartphones for Xiaomi at a leased facility in Sri City, Andhra Pradesh, was reported to be in advanced talks with the Gujarat state government last month to set up a manufacturing plant near Sanand, in which it is likely to invest $4 billion (around Rs 25,000 crore).
