ET Now reports that Foxconn, the largest manufacturer of iPhone for Apple, is exclusively going to set up a manufacturing plant in Maharashtra. The Chinese company is looking for a 1,200-acre of land to open the factory that will reportedly cost $10 billion to build.
Once the deal has been finalised, the factory will take around 18 months to be built and fully functional.
Apple has also been planning on opening its direct retail stores in India for which it recently received an approval from the Indian government panel. However, the company’s proposal to sell refurbished iPhones in India was rejected by the Indian government. Apple is also reportedly opening a research and development centre in Hyderabad for $25 million where it will employ 150 employees.
Apple has been rapidly expanding its operations in India over the last couple of years. While the market is still not as big as China for the Cupertino company, it still has a huge potential for growth here. By setting up a manufacturing plant in India, Foxconn will be able to take advantage of the Indian government’s ‘Make In India’ program that will entitle it to some benefits.
During its Q2, 2016 earnings call, Tim Cook had praised the Indian smartphone market and said that the economic reforms from the government have made it a “very good business environment.” He also noted that the company’s revenue in India grew by 38 percent, with iPhone sales growing by an astonishing 76 percent. This is remarkable since Apple noted a decline in iPhone sales across all the major markets of the world, including the United States and China in the same quarter.
[Via Economic Times]