Daily Management Review

Taiwan's Foxconn To Make More Investments In India, Sees Favourable Outlook There


Taiwan's Foxconn To Make More Investments In India, Sees Favourable Outlook There
Taiwan's Foxconn is looking to make more investments in its Indian operations and could make an announcement to that effect within the next few months, said the company’s chairman. The largest contract manufacturer of the world also views the outlook for its business opportunities in India to be quite favourable. 
Smartphones in India for Apple Inc and Xiaomi Corp is already made by Foxconn. The company however had announced in March that it was suspending its operations because of he outbreak of the novel coronavirus pandemic in the country.
Despite the existence of "certain impact" at present due to the pandemic, looking ahead, India was a bright spot for development, said the company’s chairman Liu Young-way at its annual general meeting.
"We are fully pushing ahead with next steps there, and maybe in a few months' time we can reveal on our website the next steps and report back to everyone. We'll have further investment there," Liu said. He however did not provide much detail of the plans or the factors that have prompted the company to view the business outlook in India to be favourable.
Following the suspension of work at the factories of the company in China because of the Cvoid-19 pandemic, which also resulted in a significant drop in demand from its customers, including Apple, the profit for the company for the January-March quarter plunged to its lowest in two decades.
But according to the views of the company as of last month, the worst of the outbreak for it was over, said Foxconn that was formally known as Hon Hai Precision Industry Co Ltd.
The first quarter results as reported by the company was a "special case" that reflected the impact of the pandemic on its business, Liu said. The company was also able to restart operations at its Chinese factory sooner than expected because ether were no infections at its units in the country, he added. 
Foxconn wants to make use of "resources" from customers and local governments in order to make up for losses at its China plants because of the pandemic outbreak. Liu however only added that all such activities would take place gradually over several quarters.
One of the short term risks for the company was identified to be a possible second wave of global coronavirus infection, he also said.
Compared to the first quarter, Foxconn expects its revenues for the second quarter to record double-digit percentage growth, the company said. However even that number in the second quarter would be be lower by at least in single digits when compared to the same quarter of last year.
Foxconn is the largest assembler of iPhones and other Apple products with its major production units located in China.