Hon Hai to make smartphones for China's Gionee in India: report
2015/09/11 19:07:32
Taipei, Sept. 11 (CNA) Taiwan-based Hon Hai Precision Co. (鴻海), the world's largest contract electronics maker, will team up with China's Gionee Communication Equipment Co. (金立) to assemble smartphones for the Chinese brand in India, the Mumbai-based Economic Times said Friday.
According to the report, Hon Hai, also known as the Foxconn Technology Group (富士康), will roll out smartphones with the Gionee brand in its plant located in Sri City in southeastern India.
Sri City is a special export zone located 55 kilometers north of Chennai and currently houses 107 firms from 27 countries, including 45 multinational corporations.
Hon Hai's commercial production of Gionee smartphones is scheduled to start in mid-October, the report said.
Gionee was once a contract maker for Indian brands, but it launched its own brand in the South Asian country in the first quarter of 2013, the report said.
Gionee president William Lu was cited as saying that Gionee has ambitions to make India a manufacturing hub for its brand and use the Indian base to cater to customers in Africa and in many other nearby markets, such as Pakistan, Bangladesh, Sri Lanka and Nepal.
Gionee is not the only Chinese brand to work with Hon Hai. The Taiwanese manufacturer reportedly also started production of smartphones for Xiaomi in its Sri City plant in August.
In addition, FIH Mobile Ltd. (富智康), a Hong Kong-listed subsidiary of Hon Hai, has also joined forces with Xiaomi to produce the Chinese brand's Redmi 2 Prime model in a plant located in Andhra Pradesh province in southern India.
Last week, the Economic Times said that Hon Hai will work with OPPO, another Chinese smartphone brand, to roll out some of OPPO's devices by the end of November.
Hon Hai is planning to invest US$2 billion in India over the next 10 years to set up production bases in India as it eyes the strong growth potential of the South Asian country. It is expected to open 10-12 factories in India over the next decade.
Hon Hai said it hopes to bring a complete supply chain to India instead of simply setting up assembly lines there.
In addition to the investments in manufacturing, FIH Mobile announced a deal in August to acquire a 4.27 percent stake in Snapdeal, a leading online retail platform in India.
(By Jalen Chung and Frances Huang)
