Foxconn Tie-Up Buzz Lifts Adani Enterprises Shares

Foxconn is also part of a three-way joint venture with the Sunil Bharti Mittal-led Bharti Enterprises and Japanese multinational telecommunications firm SoftBank to invest $20 billion for setting up 20 gw solar power projects in India.

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.

Adani Enterprises shares jumped as much as 9.1 per cent on Wednesday on speculation that the company will form a joint venture with Taiwan-based Foxconn for investment in India.

Foxconn makes devices for brands such as Apple, Huawei, Xiaomi, BlackBerry and Motorola. The report further added quoting sources that the company would establish its supply chain and the entire ecosystem ranging from software, hardware to ancillary units in the country as it prepares to develop India as a solid manufacturing and export base.

The Foxconn chief said they just don’t want to assemble products but play a larger role in the whole supply chain. Sources told ET that Gou’s meeting on Monday night with PM Modi was decisive in the company firming up its India plans.

“We are in advanced discussions with GreenDust and want to work closely with them”, Foxconn Chairman Terry Gou said in a press conference that was called in the late evening on August 4.

A wish list comprising tariff protection to encourage domestic manufacturing, tax predictability for the next several years and monetary incentives to pull investments from China was also shared.

The move by Foxconn is viewed as an attempt to diversify its global network of factories.

“We are at the discussion stage only and have not signed any agreement which requires disclosure under Clause 36 of the Listing Agreement”, Adani Enterprises Limited informed in a statement filed with the Bombay Stock Exchange (BSE) on Tuesday.