Adani close to JV deal with Taiwan's Foxconn

Shares of Adani Enterprises surged today after it said it was in talks with Foxconn to form a manufacturing joint venture but no agreement had been signed as yet.

The company did not clarify on the nature of the JV or the products that it will manufacture, but an Economic Times report said Foxconn could locate a plant and data centre at Adani's SEZ in Mundra, and use the Adani Port to bring in heavy machinery.

Meanwhile Foxconn, the trade name for Hon Hai Precision Industry Co Ltd, said it will invest in India as it builds a supply chain in the country, in a move that may help the country's efforts to build a technology manufacturing base.

Taiwan-based Foxconn is the world's largest contract maker of electronic products counts Apple, Blackberry, Xiaomi and Amazon among clients.

On Tuesday, Foxconn founder Terry Gou said he was looking at setting up manufacturing units in various Indian states and possible partnerships in the world's fastest growing smartphone market.

He had said in May that Foxconn was aiming to develop 10-12 facilities in India, including factories and data centres, by 2020 (See: Taiwan's Foxconn to set up a dozen facilities in India).

On Tuesday the Foxconn CEO said he was looking at India with a time-frame of more than 10 years in mind, but had not decided firm investment figures yet.

Gou said he had spoken with India's Prime Minister Narendra Modi, who is seeking to build up manufacturing in the country.

Local businessmen are hoping that as Foxconn and other companies invest in the country, suppliers will follow.

Gou said he was looking to make components such as batteries and data storage units in the country, not just assembly units.

'Foxconn' plans to work with India's Adani Enterprises , as well as local smartphone and e-commerce companies Micromax <IPO-MINF.NS> and Snapdeal, Gou said.