After Corning, Foxconn Subsidiary Rayprus Looks To Venture Into India

Months after Apple supplier and US gorilla glass maker Corning Inc said it is building a manufacturing unit in Tamil Nadu, another Apple supplier and Foxconn subsidiary Rayprus Technologies is looking to venture into the Indian market with a facility in Bengaluru.

“Rayprus is coming to the Foxconn park near the airport (in Bengaluru). Right now, they’re in advanced talks with Foxconn to set up a new facility,” ET reported, citing a source close to the matter.

In December last year, it was announced that Apple was in advanced talks with component makers like Rayprus to boost its manufacturing operations in the world’s second-largest smartphone market.

Taiwan’s Foxconn is also investing $2.7 Bn on the factory and assorted facilities in Bengaluru. Situated in the IT investment region (ITIR) near Kempegowda International Airport, the 300-acre campus will have the capacity to assemble 20 million smartphones annually, becoming Foxconn’s largest unit in India upon completion.

While talks were on and moving at a steady clip, details about the investment size and scale remain undisclosed by the companies, the report said.

According to Rayprus’ website, it operates production plants in Shenzhen, Jincheng, and Foshan in China, Taichung in Taiwan, and Mexico in North America.

Rayprus’ entry into Indian manufacturing aligns with Foxconn’s expanding presence in the country and Apple’s strategy to diversify its supply chain beyond China.

Apple has been moving a part of its production out of China amid the ongoing geopolitical tensions between Beijing and Washington DC. The company’s pivot to India has largely been led by the Centre’s attractive production-linked-incentives (PLIs) for manufacturers in the country.

Apple’s largest suppliers like Foxconn and Pegatron Pegatron already have large operations in India. Wistron, another supplier with a facility in Karnataka, has been acquired by Tata Electronics, making it Apple’s sole Indian vendor. This acquisition aims to enhance Tata Electronics’ capacity in contract manufacturing of high-end electronic items and accessories.

Meanwhile, in February, Apple India reached a significant sales milestone, exceeding $8 Bn (INR 66,000 Cr) in revenue. This marks the second consecutive year of sales growth exceeding 40% for the iPhone maker, as reported by ET.

By the end of the fiscal year in March, Apple India is expected to surpass INR 70,000 Cr in revenue, becoming the second electronics brand in the country to achieve this milestone after its South Korean competitor, Samsung.