“India has now reached a population of 1.4 billion people, translating to a large potential market for mid-to-high-end products which our clients are focusing on. Hence, it is necessary for us to continue to expand assembly and component operations in India,” he said.
More and more suppliers are investing in establishing plants in India and believe that this will become more prominent as time goes on, he said. As for labour costs, India also has its advantages, he added.
Hon Hai will also continue to apply for government incentives, to increase its competitiveness, he said.
To invest in a new region or country, challenges would include not just the language, but also culture and manufacturing capabilities, as well as supply chain completeness, said Liu, in response to a question on a large change in its supply chain, especially in India.
The company’s presentation also said it purchased land in Karnataka on May 8. Company filings with the London Stock Exchange said the company is purchasing 300 acres of land in Bengaluru’s Devanahalli taluk near the city’s international airport at 3 billion rupees.
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Asked for an update on the company’s moves in India and its differentiation with competitors, Liu said, thus far, many players are still in the learning phase. From 2006, Hon Hai entered India, ahead of competitors and at a larger scale, he said. During this time period, we have accumulated much experience in managing local employees, supply chain and logistics, which are all important competitive advantages that have allowed us to move at a pace that is faster than the market, he said.
It has also allowed us to expand quickly, he said. Hon Hai will also continue to apply for government incentives, to increase its competitiveness, he said.
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