Taiwan electronics giant Foxconn said Tuesday it would invest $200 million in leading Indian online marketplace Snapdeal as part of efforts to tap a huge potential market.Foxconn’s fully-owned subsidiary in Singapore Wonderful Stars will acquire a 4.27 percent stake in Snapdeal, according to a statement released by Foxconn.
The investment came after Terry Gou, founder of the Foxconn group, signed a memorandum of understanding with Devendra Fadnavis, chief minister of the western Indian state of Maharashtra, early this month to invest $5 billion in a new plant.
Foxconn, the supplier to Apple also known as Hon Hai Precision Industry, is the world’s largest computer components manufacturer and also assembles products for Sony and Nokia.
Setting up a facility in India could help cut Foxconn’s labour costs and boost sales of iPhones in a country that boasts 952 million mobile connections.
Foxconn’s decision to invest $5 billion in India has sparked media concerns in China, where the economy is slowing.
The group employs about a million workers in China, roughly half of them based at its main facility in the southern city of Shenzhen.
The group has production facilities in more than 10 countries, including Vietnam, Brazil and Mexico.