Foxconn will bring Industry 4.0 into India: Founder-CEO
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On his most recent whirlwind trip to India, The world's largest contract manufacturer, best known to manufacture Apple and Kindle products is currently looking to set up manufacturing units in Andhra Pradesh, Gujarat, and Maharashtra and subsequently expand to other states across the country. The company is aiming to offer at least 1-2 million jobs by 2020.
Gou has been meeting several internet start-ups, small-medium enterprise and device manufactures in India including Bharti's Hike Messenger and Snapdeal for potential investments and partnerships. The company aims to partner with Indian enterprises to envisage its broader vision called Internet Plus.
When asked if he feels any change since his last trip to India to launch Nokia’s Chennai plant Gou says, “I’ve come back after a decade, and I do see changes in people’s mindsets. Tonnes of smart and talented entrepreneurs with bright ideas willing to launch their own businesses.”
Gou says that it confuses him why the Indian market is so open. Internet giants like Facebook and Google are banned in China, giving rise to local players. “In China, we have BAT - Baidu, Ali, Tencent. Why does the country not support the local young generation and the locals use a service that’s not yours? This means while the country is independent, the economy is not. You’re just users”, he observes.
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He also feels the government has not done enough to support industry. “In India spectrum is so expensive. Companies spend billions on this. They can save it to build towers and other infrastructure. While India has a great software base worldwide, and the young generation is working so hard, IT/DT technologies can’t flourish without hardware support. China has over 95% 4G coverage. India has less than 1% 4G, and your 3G keeps switching to 2G. This is a major problem”, he says.
Gou points out that while Modi and the local governments are more ‘friendly’ now, the infrastructure and tax regulations are things they should look into. He admits to having met Ministers of Andhra Pradesh, Gujarat, and Maharashtra. Foxconn had to close down its Chennai plant due to labour issues. There were ‘complications’, he says, "not our fault, political situation."
When asked whether we’ll see iPhones and Xiaomi smartphones manufactured in India, which can significantly reduce prices in local markets, Gou replies, “The brand is not important. It could be a Lenovo or a Micromax. We’re more focused on whether the phones meet the local demand. The key is that it should be locally assembled with local components and equipment by locals, keeping locals in mind”.
“We’re willing to educate and work with local talent to manufacture software and content for the Indian audience”, he says, “My vision of the future would see a seamless integration of hardware and software. Imagine your software and our hardware together.”
(Image credit: Forbes)
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