Foxconn's Bharat FIH is exploring new business avenues as there has been a drop in orders from Xiaomi
Bharat FIH, a Foxconn group company located near Chennai, is facing a slowdown in orders from its major client Xiaomi, owing to recent government actions targeting Chinese businesses in India. The company is now, looking for new opportunities beyond smartphone manufacturing, and exploring different avenues to diversify its operations.
Bharat FIH is now setting its sights on driving growth in areas such as telecommunications equipment, electric vehicles, televisions, and displays, as per a report by the Economic Times.
The company has stated that the Sriperumbudur facility is predominantly focused on surface-mount technology (SMT) operations, while also accommodating assembly, testing, marking, and packaging (ATMP) operations tailored for specific market segments.
Bharat FIH confirmed its diversification strategy, citing its success in smartphones as a springboard into new areas like electric vehicles (EVs). While the company didn't reveal the current capacity of the Sriperumbudur plant, it talked about its capability to adapt and expand in response to customer needs and market trends.
Dixon leads India's mobile phone contract manufacturing market with a 32 per cent share, followed by Foxconn and DBG Group, the manufacturer of Xiaomi and Realme smartphones. Bharat FIH holds the fourth position with a market share in the single digits.
However, experts cautioned that the diversification process will require a significant amount of time before yielding tangible results.
It is also expected that India's smartphone market will, as per the report, remain relatively stable in 2024, hovering around 146 million units, with a marginal increase expected to reach 151 million units by 2025. However, established players like Dixon pose significant competition for firms such as Bharat FIH.