Foxconn Hon Hai Technology India has bought 300 acres of land in Bangalore Rural District for Rs 300 crore, according to a filing by parent Hon Hai Precision Industry on the London Stock Exchange.
The transaction has been carried out by parent Hon Hai Precision on behalf of Foxconn. The iPhone manufacturer has bought the land in the Information Technology Investment Region (ITIR) in Devanahalli taluk of Bangalore Rural District.
The development is crucial as the company is looking to diversify its manufacturing base away from its largest market, China. Owing to benefits of the production-linked incentive scheme, iPhone manufacturers like Foxconn are finding India a lucrative destination to manufacture iPhones.
In the filing, the company said the land has been acquired for operation requirements.
Based on the incremental investments and sales, Foxconn in December became the first global company to have received approval for production-linked incentives worth Rs 357.17 crore for mobile manufacturing done in FY22. In fact, the company has also submitted incentive claims for FY23.
In March, the Karnataka government said that Foxconn would invest `8,000 crore to set up a mobile manufacturing unit in the state that will offer employment to 50,000 people. The announcement from the state government came after Foxconn chairman Young Liu met chief minister Basavaraj Bommai.
The company had also entered into an agreement with the Telangana government to set up an electronics manufacturing facility. While the amount of investment was not disclosed, the facility is expected to provide employment to 100,000 people.
According to reports, the company is likely to invest around $200 million for its manufacturing facility in Telangana and might use that facility to manufacture iPods.
Lately, Apple has also been looking at doubling and trebling its growth and investments in India. Apple registered a four-fold jump in exports of iPhones to over `40,000 crore in FY23. One of the company’s units in Chennai, operated by Vietnam’s Foxconn Hon Hai, has already emerged as the largest in the country in a single location in any sector, employing 35,000 people on the shop floor.
Of the total `90,000 crore worth smartphone exports in India in FY23, half was contributed by Apple, according to industry estimates.
In the last financial year ended March, Apple’s sales from India rose nearly 45% to $6 billion in FY23.