iPhone Maker Foxconn Buys 300 Acres Land Near Bengaluru Airport For Rs 300 Crore: Report
Hon Hai Precision Industry informed that its subsidiary Foxconn Hon Hai Technology India Mega Development on May 9 purchased land for approximately Rs 300 crore in the Bengaluru rural district.
Foxconn, the biggest supplier and maker of Apple iPhone parts, has bought 300 acres of land in Bengaluru, months after signing an MoU with the Karnataka government to invest in the state. In filings with the London Stock Exchange (LSE), Hon Hai Precision Industry informed that its subsidiary Foxconn Hon Hai Technology India Mega Development on May 9 purchased land for approximately Rs 300 crore ($37 million) in the Bengaluru rural district of Karnataka, says a report by Moneycontrol.
The land is located in Devanahalli, which is situated near the Kempegowda International Airport on the outskirts of Bengaluru.
The move comes as the Taiwanese electronics manufacturer looks to diversify production away from China.
In March, the Karnataka government signed a memorandum of understanding (MoU) with Foxconn, wherein the company committed to investing Rs 8,000 crore in setting up a mobile manufacturing unit. The facility is expected to generate employment opportunities for around 50,000 individuals in the state.
Foxconn had expressed its interest in setting up the electronics manufacturing unit as part of its "Project Elephant" in Bengaluru in a letter to Chief Minister Bommai on March 6. A team of 16 senior executives from the company, led by the company CEO Young Liu, visited Bengaluru on March 3.
According to a MoneyControl report, on March 3, a location for Foxconn's manufacturing facility was identified on 300 acres of land in the Information Technology Investment Region (ITIR) industrial area in Doddaballapur, Devanahalli Taluk, near the Bengaluru International Airport. The facility was expected to create more than 1 lakh job opportunities in the state over the next decade.
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However, on March 4, Foxconn stated that it had not signed any binding or definitive agreements, despite signing a Letter of Intent with the Karnataka government the previous day. This incident caused significant embarrassment for state CM Bommai ahead of the assembly polls.
Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Electronics & Technology, had also tweeted that Apple phones will be built in a new 300-acre factory in Karnataka.
Moneycontrol had reported that Jayesh Ranjan, the principal secretary of IT and Industries in Telangana, confirmed that Foxconn would hold a "ground-breaking" ceremony in the state on May 15. The investment, which is expected to create 1 lakh jobs, has garnered a lot of attention and is said to be the company's biggest single investment in India to date.
Both the Karnataka and Telangana governments have been promoting Foxconn's interest in investing in their states.
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