Adani says in talks with Foxconn for JV, no deal yet

Gou who met with the Prime Minister earlier in the day said the company is very interested in a number of government schemes including Make in India, Skill India, Digital India and Clean India.

While refraining from disclosing actual locations, Gou said the company is looking at states including Andhra Pradesh, Gujarat, Maharashtra as possible locations for setting up manufacturing units.

It is speculated Adani Enterprises, the flagship company of the Adani Group, is in talks with Foxconn to form a joint venture (JV). A high-level Foxconn team led by Gou met prime minister Narendra Modi on Tuesday. “So, we will be careful in making any specific announcement”, Gou said, adding Foxconn would look at exporting from India to neighbouring countries.

Following a PMO directive, communications minister Ravi Shankar Prasad and secretaries from half-a-dozen ministries held a series of meetings with the Foxconn top executive, indicating chances of some big-ticket investments.

“We are at the discussion stage only and have not signed any agreement which requires disclosure”, the company said in a filing.

Last month, Adani’s shareholders had cleared a proposal permitting the agency to increase up to Rs 6,000 crore by way of issuance of securities to maintain speedy enterprise progress.

Earlier, the world’s largest electronics-assembly contractor had said it was aiming to set up 10-12 greenfield manufacturing facilities in the country by the end of 2020.

Foxconn will make the biggest investment in the mobile handsets business while Adani Enterprises would be a minority stakeholder capitalising on the land bank it has in Mundra SEZ. Adani Enterprises’ agreement with Foxconn will give the former company a thrust in mobile and electronics manufacturing in India as the JV will be looking to manufacture whole host of electronics including tablets and mobile phone for brands like Apple and Kindle.