IPhone maker invests $37.2 mn in India entity

CHENNAI: Hon Hai Precision Industry Co. Ltd. (Foxconn), the world’s largest electronics manufacturer, has announced an additional investment of $37.2 million into its Indian subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, further strengthening its long-term commitment to expanding manufacturing operations in India, as per London Stock Exchange filing.

The investment was made through Foxconn Singapore Pte Ltd., a wholly-owned subsidiary of Hon Hai Precision Industry, via a capital infusion approved by the company’s Board of Directors.

As part of the transaction, Foxconn Singapore subscribed to approximately 351.73 million equity shares of the India entity at a face value of Rs 10 per share.

Following the capital infusion, Foxconn Singapore’s investment in the Indian subsidiary has increased to approximately $2.82 billion, representing a virtually 100 percent ownership stake. The company said the investment has been made through internally generated funds and has been classified as a long-term strategic investment.

The latest capital infusion underscores Foxconn’s continued confidence in India’s manufacturing ecosystem and aligns with the country’s growing importance in the global electronics supply chain. India has emerged as one of Foxconn’s key manufacturing hubs, supported by favourable government policies, expanding infrastructure and increasing demand for electronics production.

The company clarified that the transaction is purely a capital increase within the group and does not involve any change in business operations or ownership structure.

No broker fees were incurred, and the investment carries no restrictive covenants or special contractual conditions.

Foxconn has been steadily expanding its manufacturing footprint in India across multiple product categories and has announced several investments in recent years as part of its broader strategy to diversify global production capabilities.

With the latest transaction, Foxconn Singapore’s cumulative stake in the Chennai-based subsidiary has increased to 99.99% at a valuation of $2.82 billion (around Rs 26,600 cr)