Foxconn not to set up Maharashtra unit: Subhash Desai

MUMBAI: Industries minister Subhash Desai on Monday said that Foxconn, the world’s biggest contract manufacturer of consumer electronics, will not be setting up its unit in the state.
Desai’s comments finally set the record straight on Foxconn’s proposed $5 billion investment in the state to set up a plant to make mobile phones and components and help create 50,000 jobs by 2020.

Desai said the Taiwanese electronic giant is facing market-related issues and also competition from smartphone-manufacturing firms in India. “Foxconn’s commitment of investing in the state will not work. It doesn’t serve directly to the consumer but manufactures electronic gadgets for Apple and is now facing some internal issue with them,” Desai said.

The state had signed a memorandum of understanding (MoU) with the manufacturing giant in 2015. Officials said that the state was keen to host Foxconn but things did not materialise despite multiple meetings. Sources in the industries department said that land was also identified in the special economic zone of Jawaharlal Nehru Port Trust, but things did not work out, they said.

Desai said that the state had learnt its lesson and will now think twice before believing industries in their claims of investments.