TapTechNews July 6th news, according to Digitimes media reports, Foxconn's Indian factory presents a'split situation' where, on the one hand, the production line of Apple iPhone is in full swing and needs continuous expansion, while the company producing Android smartphones is facing the embarrassing dilemma of executives leaving and the factory being on the verge of closure.
TapTechNews cited sources saying that BharatFIH, the Indian subsidiary of Foxconn Group, is struggling to solve the problem of executives leaving and may have to close one of the two factories.
Insiders disclosed that within the past three months, three independent directors of BharatFIH have resigned: Venkataramani Sumantran, the chairman of InterGlobe Aviation, and Ramaraj R, the co-founder of Sify Technologies, both left in March; Aruna Sundararajan, the former secretary of information technology and telecommunications, resigned a month ago.
The report also pointed out that the status of another independent member of the BharatFIH board, Dipali Hemant Sheth, is also uncertain. Sheth serves on the boards of several other companies, including AdaniWilmar and UTIAMC.
Foxconn is expanding its iPhone production capacity in India through other subsidiaries, while BharatFIH is facing the challenge of a significant drop in orders from Xiaomi. It is reported that Xiaomi's orders have dropped by 70%.
In the process of Foxconn expanding the iPhone production, the participation of this subsidiary is not high.
In order to offset the decline in the mobile phone assembly business, sources disclosed that BharatFIH is integrating the business of its Sriperumbudur factory and developing into industries such as telecommunications equipment, electric vehicle parts, televisions, and displays.
According to the data of the Bureau of Indian Standards, BharatFIH produces mobile phones at its SriCity factory for Nokia and Xiaomi as well as the sub-brands of Xiaomi; while at the Sriperumbudur factory, the production is limited to Xiaomi and its sub-brands.
A analyst who did not want to be named said that BharatFIH company is too dependent on Xiaomi company. The mobile phone brands produced by the two companies under it are as follows:
SriCity factory: Redmi, MI, Xiaomi, nnjj, Nokia, Poco
Sriperumbudur factory: MI, Redmi, Xiaomi, Poco