Foxconn’s subsidiary Bharat FIH to pump Rs 400 crore in Indian entity

A subsidiary of Hon Hai Precision, commonly known as Foxconn, said its Indian entity Bharat FIH will make a capital injection of Rs 400 crore in wholly owned subsidiary Rising Stars Hi Tech as a “long-term investment” for working capital and general corporate purposes.

The investment is scheduled to be made this month, FIH Mobile said in a stock exchange filing, dated December 5, in Hong Kong.

Bharat FIH, formerly known as Rising Stars Mobile India, is a Foxconn Technology Group company which established its first unit in 2015 at Sri City in Andhra Pradesh. In 2017, the company expanded its manufacturing operations to Sunguvarchatram and Sriperumbudur near Chennai.

It also expanded its capabilities to contract manufacture casings, mechanics and components, PCBA and final assembly of mobile devices. It also manufactures mobile phones, electric-vehicle components, telecom network equipment, televisions, hearables and mechanics and works with brands including Chinese smartphone brand Xiaomi.

FIH Mobile said the funding will increase the issued share capital of Rising Stars Hi Tech to Rs 450 crore.

This announcement comes a week after Foxconn said it would invest more than $1.5 billion in an Indian construction project to fulfil the Apple supplier’s “operational needs”. The investment was made through a Foxconn subsidiary, Hon Hai Technology India Mega Development.

The latest announcement by FIH Mobile comes as Tamil Nadu is gearing up for its Global Investors Meet (GIM) in January, 2024. The event is expected to see big ticket investments being pumped into the state which is home to a large electronics manufacturing ecosystem.

Foxconn, for instance, has a large presence in Tamil Nadu – both Bharat FIH and Hon Hai Technology – operate in Sriperumbudur near Chennai. The company has been ramping up its India manufacturing presence and has been making big ticket investments across the country for the same.

Foxconn Chairman Young Liu made a visit to the state in July where he inked an agreement with the government to invest Rs 1,600 crore in a new mobile components manufacturing facility in Kancheepuram which was expected to generate 6,000 jobs.