Foxconn plans e-commerce platform in India

Bengaluru: Foxconn, the world’s largest contract electronics manufacturer, plans to build an e-commerce platform in India. It will also set up a local data centre to tap growth in the country, one of the “key global” markets.

“Our plans in India are being finalised, but these include building an e-commerce platform, data centre and computing power-related capabilities, and augmenting manufacturing, research and development and other strategic capabilities,” Foxconn Technology Group said in an email to Business Standard on Monday.

In March, Foxconn piloted an electronics goods marketplace flnet.com in China, which sells components it produces for Apple, Huawei, Samsung and Xiaomi. In China, Foxconn is taking on for the second time established e-commerce marketplaces such as Alibaba and JD.

Foxconn was in talks with the Alibaba Group and Japanese investment bank Softbank to jointly invest in Snapdeal.

Foxconn did not clarify whether it would pilot flnet.com in India independently or co-invest in a local e-commerce player.

India’s e-commerce sector is expected to touch $22 billion in 2015, according to an analysis by PwC India.  Global investors are looking at India because of its young population, rising income and a large user base that is mobile first.

On August 8, Foxconn signed an agreement with the Maharashtra government to invest $5 billion (Rs 32,500 crore) in factories to make electronic goods in the state and generate over 50,000 jobs.  The company did not provide details, saying the plans were being finalised, but said it would tap local talent in information technology, software, engineering and telecommunications.

“These plans will be rolled out in phases over the next five years,” the company said in a statement.

Since the National Democratic Alliance government came to power, Taiwanese executives have visited India repeatedly, including two visits by Foxconn Chairman Terry Gou. Gou met government officials and business representatives earlier this month.

“Our plans include establishing 10-12 manufacturing facilities in the country by 2020, a development that will meet the needs of our customers and will generate job opportunities for Indian workers,” Foxconn said in the statement.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.