The funds, classified as long-term investment, will be used for various purposes including business expansion and additional working capital
Taiwan's Foxconn, the world's leading contract manufacturer of electronic devices such as iPhones, has upped its India bet by deciding to infuse fresh capital, giving impetus to the government's Make In India initiative.
Foxconn unit FIH Mobile said Wonderful Stars Pte Ltd, an indirect wholly owned subsidiary incorporated in Singapore, has decided to make a $100 million (about Rs 630 crore) capital injection in Rising Stars Mobile India Pvt Ltd, a direct subsidiary of Wonderful Stars incorporated in India. Rising Stars Mobile India is a top original equipment manufacturer (OEM) in India.
The funds, classified as long-term investment, will be used for various purposes including business expansion and additional working capital.
"It is hereby announced that...Wonderful Stars Pte Ltd decided to make a capital injection in Rising Stars Mobile India Pvt Ltd in an aggregate amount of $99.9 million," said a regulatory filing of FIH Mobile, the mobile phone arm of Taiwan-based Foxconn Technology Group.
Hon Hai Precision Industry Company Ltd, the anchor company of Hon Hai/Foxconn Technology Group, was founded by Terry Gou in 1974.
Rising Stars Mobile India Pvt Ltd was incorporated in May 2015 and is registered at Registrar of Companies, Hyderabad.
Subject to the completion of necessary formalities and procedures under the applicable Indian laws and regulations, immediately following the said capital injection, the total issued share capital of Rising Stars Mobile India would be increased to Rs 12,988,699,900 (equivalent to approximately $204.54 million), 99.95% of which would be held by Wonderful Stars.
The remaining 0.05% would be held by Aptech Electronics Pte Ltd, another indirectly related entity.
Rising Stars is principally engaged in the production of mobile phones, communication tools and electronic products along with related software patents and programs.
Foxconn Group has factories in India at Chennai and Sri City. American smartphone brand InFocus, which is licensed to Foxconn, has last year launched its smartphones in India.
Foxconn Group is said to manufacture Xiaomi, Gionee and Oppo mobiles in India from its factories in Chennai and Sri City. It is also understood to make smartphones and feature phones for Nokia.
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