The world’s largest contract manufacturer, Foxconn, will invest about Rs 30 crore in setting up two training centres in India to train about 100,000 people over three years.
The move comes as a response to the government’s ‘Skill India’ programme, which seeks to train people to make them employable in the manufacturing sector, according to people aware of the developments.
With plans to open these centres by the first half of next year, the Taiwanese company wants to take students from different colleges, who after training, can be absorbed into the company’s manufacturing plants that make smartphones and television panels.
“The centres will be state of the art, spread across 1 lakh sq ft with assembly lines and other equipment, which can help students learn the know-how. To start with, around 30,000 people will be trained in the first year,” a senior industry executive said, asking not to be named.
“The ground breaking in Andhra Pradesh and Tamil Nadu, where the company has its existing manufacturing plants, is expected to take place by the first quarter and soon after, construction should begin,” another senior executive said. Queries sent to Foxconn remain unanswered.
Foxconn has about 8,000 people, mostly women, employed in its factories in Sriperumbudurand Chennai.
However, it faces the challenge of hiring an employable workforce, an issue that is faced by many companies in the handset, consumer durable and home appliances industries.
The challenge is more acute in the handset space due to the complexity of the assembly involved, which requires a fair amount of training before workers can be put on the floor, an industry insider explained.
With the addition of training facilities, Foxconn may well be able to strengthen its position in the market where contract manufacturers or electronic manufacturing services (EMS) providers made 50% of the handsets shipped into India locally, of which 82% was made by the top three players, according to Counterpoint Research.
The world’s largest iPhone maker had the lion’s share of India’s contract market last year at 63%, followed by China‘s HiPad at 12% and US-based Flex at 7%.―Business Telegraph