It’s been a while since we’ve seen brands like Samsung, Xiaomi, and even Apple taking an interest in manufacturing and exporting their goods from India, providing jobs and training, and building a professional workforce.
And now another Apple contract manufacturer is looking to start manufacturing equipment in India. Pegatron, Apple’s second-largest contract manufacturer, has greenlit an initial investment of $150 million (approximately Rs 1,100 crores) to set up a production facility in India.
This was seen in the company’s submission to the Taiwan Stock Exchange program. Although the sum does not explicitly indicate what it will be used for, it simply states ‘long-term investment.’
The Taiwanese production giant has registered a subsidiary in Chennai and is currently in negotiations with the state governments of the nation on land allocation. The facility is scheduled to begin at the end of 2021 or the beginning of 2022.
The project was supposed to begin earlier but was pushed back as a result of the COVID-19 disease outbreak that destroyed the lives of people around the world. The company said in a statement, “Due to the Covid-19 situation, it has been harder for Pegatron staff to visit India, resulting in delays.”
This investment comes at a time when Pegatron’s largest facilities in China are facing significant violations of labor laws affecting student employees. Pegatron required student staff to work night shifts and assigned work that had little to do with their academics. This has also prompted Apple to stop business with the Taiwanese manufacturing giant until the problem has been dealt with.
As part of the government’s PLI scheme, Pegatron has to generate Rs 4,000 crores in its first year. It’s not going to be the only Apple manufacturer in India, as Foxconn and Wistron are both part of the PLI schemes listed above, investing $900 million over the next five years.
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