Foxconn’s India Arm To Focus On Apple Supply Chain Service, Rejigs Board

Foxconn’s India arm Bharat FIH is reportedly looking to pivot its strategy to focus on Apple’s supply chain service rather than competing in the electronics manufacturing services (EMS) space amid drops in Xiaomi orders.

Bharat FIH, which has been weathering a rough spell following exits of several board members last year, has overhauled its board by roping in two new independent directors, UExcelerate cofounder and chief business officer Payal Koul Mirakhur and chartered accountant Arun Todarwal.

As per Mirakhur’s LinkedIn profile, she has been with Bharat FIH’s board since September 2024.

As per the company’s official website, currently the board comprises chairman Hui Chung Chen, Yu Yang Chih and Kam Wah Danny Tam as non executive directors and Abraham Joseph as managing director.

Inc42 has reached out to Bharat FIH’s chief marketing officer Shailendra Jha for comments on the development. The story will be updated based on his response.

Bharat FIH is looking to manoeuvre itself from an EMS company into a different direction after hitting a roadblock due to a drastic drop in orders from its primary client Xiaomi, an ET report said, citing sources close to the matter.

“They are getting into equipment servicing and maintenance for Apple suppliers,” a source was quoted as saying in the report.

The EMS company has been working with Foxconn Hon Hai at its Chennai and Bengaluru units, alongside Tata Electronics-owned Pegatron and Wistron, so far. A source highlighted that Bharat FIH is looking to be an independent service provider to these players and have been doing this work for about a year now.

The source explained that Bharat FIH is equipped with people trained to look into servicing of these equipment stationed at the Apple suppliers’ sites.

Established in 2015 in Andhra Pradesh, Bharat FIH was formerly known as Rising stars Mobile India. The company is one of the largest EMS companies in the country and is a renowned vendor of smartphone majors like Apple and Xiaomi.

Other than assembling iPhones for Apple, it also makes mobile phones, electric vehicle components, telecom network equipment, televisions and hearables, among others. 

Besides its Sri City plant in Andhra Pradesh, Bharat FIH has two other facilities in Sungavarchatram and Sriperumbudur near Chennai, India. Currently, it employs 25,000 workers, based on its website data.

Foxconn’s Plans On Boosting iPhone Production

The development comes days after a report said that Foxconn is eyeing to double its iPhone production to 25-30 Mn units at its India facilities in the ongoing calendar year.

The manufacturer has been experimenting with restricted testing operations at its new Bengaluru facility over the past 3-4 months, to check if the plant can produce Apple’s flagship product at scale without flouting quality standards.

Prior to that, Karnataka chief minister Siddaramaiah, in his state budget speech, mentioned that the iPhone manufacturer will receive an incentive of INR 6,970 Cr under the state’s Electronics System Design and Manufacturing (ESDM) policy, in early March.

Apple’s Push Towards Domestic Production

The iOS maker has been banking on the Indian government’s PLI schemes to expand its production abilities in the country via partnerships with domestic suppliers and manufacturers in the past year.

Reports from January revealed that Apple surpassed INR 1 lakh Cr mark in iPhone exports from India in 2024, with total shipments reaching a record $12.8 Bn (around INR 1.08 Lakh Cr), marking a 42% rise compared to the previous year.

Prior to that, Apple was reportedly looking to assemble 32% of the global iPhone production volume and 26% of its value in India by 2026-27, for which discussions were held between Apple and its vendors and central and state governments, regarding the assembly of the devices in the country.

For the first half of FY25, Apple’s vendors anticipate a freight-on-board (FOB) production value of $9 Bn. By the end of the fiscal year, India is projected to contribute 17-18% of the global iPhone production volume and 14% of its value.

Two months ago, the tech giant was assembling its newly launched iPhone 16e locally through its contract manufacturers for domestic users while exporting it to other countries.