Sudden!Lixin Precision Gives up in India to invest in a factory in India

  • Source:Network finishing
  • Release on:2023-11-20

On November 20th, the Indian media Business Standard reported that after three years of attempt to expand its business in India for three years, but after the failure, Apple supplier Lixun has abandoned the plan to invest in India.

It is reported that Lixun Precision has decided to transfer US $ 3.30 million (currently about 2.383 billion yuan) investment to Beijiang Province, Vietnam.

Compared with the Indian government's muddy water, the Vietnamese government immediately approved the investment last week, which made its total investment in Vietnam reaching $ 504 million.The Indian media pointed out that "this is the loss of India."

According to Indian media reports, Lixun Precision established an office in India in 2019 to plan to acquire a digital product manufacturer in Tamilnadbon, southern India.Lixun Precision plans to invest 7.5 billion rupees (currently about 650 million yuan) to produce Apple mobile phone components.However, the approval of foreign direct investment (FDI) for the project has not been approved.It is understood by sources who developed the project, saying that the visas of the Lixun precision executives have been rejected many times.

On November 9, the Management Committee of the North Jiangxi Provincial Industrial Park of Vietnam announced that Lixun Precision will invest 330 million US dollars in the province to build new production facilities.

In fact, similar cases have also happened in other industries.According to Reuters, it was quoted by people familiar with the matter on July 28, BYD told its Indian joint venture partner that after its investment proposal facing the New Delhi review, the company will put on hold a new $ 1 billion electric vehicle investment plan.According to media reports, BYD plans to enter Vietnam to enter electric vehicle manufacturing and assembly business.

A senior Indian industry who did not want to disclose his name told the Global Times that this situation seriously affects the normal operation and confidence of Chinese companies in India."India is not the only choice for Chinese companies' global expansion. Considering the current situation, choosing other markets seems to be a cautious decision," he said.

*Disclaimer: The news of this article originated from Business Standard, Reuters, IT House, Global Times, and the news was for exchanges and learning.