Bharat FIH, the parent company of Foxconn Indian subsidiary, Rising Stars Hi-Tech, is injecting a $48 million investment into the business. This financial infusion is expected to fortify the subsidiary's working capital and propel its overarching strategic objectives. Notably, this move closely follows Foxconn's recent commitment to invest $1.5 billion in India to cater to its operational requirements. The substantial investment from Bharat FIH underscores a broader strategy to support and enhance the capabilities of Foxconn's Indian operations, reflecting the company's commitment to growth and development in the Indian market.
The investment, disclosed in a Hong Kong stock exchange filing, signifies a strategic, long-term commitment to bolstering working capital and supporting general corporate needs.
“The capital injection is currently scheduled to be effected in December 2023,” the filing added.
As per FIH, the issued share capital of Rising Stars Hi-Tech will increase with the funding to INR 450 Cr.
Established in 2015, Bharat FIH serves as a key vendor for smartphone giants like Apple and Xiaomi. Beyond assembling iPhones for Apple, the company engages in the production of mobile phones, electric vehicle components, telecom network equipment, televisions, wearables, and various other technological devices. Its diverse portfolio reflects its pivotal role in contributing to the manufacturing ecosystem across multiple sectors.
In a bid to broaden its presence in India, Foxconn declared its intention in September to double its employment, investment, and business scale within a year. The move signifies the company's strategic commitment to expanding its operations and impact in the Indian market.
In addition to assembling Apple's products within India, Foxconn is strategically venturing into the semiconductor and electric vehicle sectors. The company has forged a partnership with the French-Italian semiconductor company STMicroelectronics to initiate semiconductor manufacturing operations in India. This expansion into new technological domains underscores Foxconn's commitment to diversification and innovation beyond its traditional manufacturing scope, positioning itself as a key player in emerging sectors such as semiconductors and electric vehicles within the Indian market.
This development coincides with Apple's accelerated manufacturing expansion in India, a strategic move amidst escalating geopolitical tensions between Beijing and Washington. Currently, India contributes approximately 7% to the global production of iPhones, highlighting the country's growing significance in Apple's manufacturing ecosystem. The increased focus on Indian manufacturing not only aligns with Apple's diversification strategy but also serves as a response to geopolitical dynamics, positioning India as a key player in the global supply chain for one of the world's leading technology companies.