Naidu meets Xiaomi and Foxconn executives

Hyderabad, April 13 (INN): Aiming to bring electronics manufacturing to Andhra Pradesh Chief Minister N Chandrababu Nadu began his second day in Beijing by meeting with executives from Chinese low-cost smartphone maker Xiaomi and electronics manufacturer Foxconn today.

During the meeting, the Chief Minister informed the company executives about the advantages of Andhra Pradesh, the availability of abundant water and power. 'We have a 21-day clearance mechanism for industries. We have a deemed clause and are working with Lee Kuan Yew School of Public Policy in Singapore on the ease of doing business,' the Chief Minister added.

Lauding Chinese manufacturers for their speed and scale of business, the Chief Minister said he wants to deliver all services through mobile. 'We are looking at mobile applications in our digital literacy campaign,' he added. Stating that Andhra Pradesh will be an innovator and has been using technology for governance, the Chief Minister said that Andhra Pradesh could emerge as an electronics hub to substitute to India's hardware imports which are nearly $50 billion.

Xiaomi India head Manu Jain, during a presentation, said that the company is five-year-old and works with Foxconn in China, Brazil and India.

Xiaomi, represented by the company's president Lin Bin and vice-president Hugo Barra, informed that the company's smartphone sales alone totaled $335 million.

Barra informed the Chief Minister that she is looking forward to build a great working relationship with Indian and AP after an assurance from the Chief Minister about land and power issues.

Meanwhile, Josh Fougler, vice-president of Foxconn, informed the AP delegation that the company employs 1.5 million people globally. 'We're looking at $3.5 billion investment in India in the next two-three years. This would span across smartphones, software, TVs and other electronics,' Fougler said, continuing, their plans will provide jobs to 1.2 million people.

After stating that Andhra Pradesh is looking forward to have Foxconn and Xiaomi in the state, the Chief Minister informed company executives that AP State Skill Development Corporation (APSSDC) will pitch in to train people based on the skills required.

In a meeting with executives from Sinomach which has 50 research and manufacturing companies, Liu Jingzhen, the company's vice-president evinced interest to invest in India.

'We are no.1 in China in manufacturing of machinery. We are watching India's growth trajectory. We know that India has a high growth potential,' Mr Jingzhen.

They informed the Chief Minister that they will meet him soon with a detailed proposal in June or July. The company has come up with a proposal to set up an industrial park.

The Chief Minister extended an invitation to Sinomach's president to visit AP soon so that MoU can be signed with the company when the Prime Minister visits China.

In another meeting with executives from Shenzen Mary Photoelectric Co. Ltd, a company controlled by the Government of China, the Chief Minister was informed that they one of the top 10 companies in China for LED displays.

The Chief Minister invited them to explore opportunities in AP for setting up a manufacturing plant or assembling unit in AP. 'We have low labour costs in India,' the Chief Minister added.

During the meeting, Seimens senior vice-president M'sl'm Yakisan said that the company is interested in infrastructure projects in India.

'Railways, airports, turnkey projects. We have expertise in inter-city and high-speed transport, commuter and regional transport. We are also good at urban transport, offer e-mobility solutions for e-cars, e-buses, parking management integrated-traffic management,' Yakisan added.

Yakisan, who saw the presentation made by the AP delegation, said that the new capital of Andhra Pradesh will require e-mobility solutions in traffic management, satellite solutions and solutions for airports and air-traffic.

The senior VP said the company will come to the Chief Minister with a detailed project report (DPR). The Chief Minister said that the company could explore PPP model.

'The new state will have metros in Vijayawada, Visakhapatnam and Tirupati. We are looking at integrating our transport systems because we have an inland waterways coming up in our state,' he said.

The company informed the CM that they have worked on passenger and cargo solutions in Germany and that they can work with Andhra Pradesh.

The Chief Minister asked the company executives to be part of Amaravathi and take up a pilot project for 10-15 km within the city.

SUMEC Group, which is a state-owned enterprise, informed the Chief Minister that the Group has made an investment of $1 billion in renewable energy.

'We have presence in solar and wind projects, infrastructure, water treatment projects in Japan and Europe,' Christopher Tan, MD of the Group said.

Stating that the company's turnover for last year was $7billion, he said that they are into ship-building and manufacture of diesel generators. The company has come forward to invest in 5,000MW solar project.

Elaborating on the opportunities in AP, the Chief Minister said Andhra Pradesh is looking for a huge boost in renewable energy. 'Apart from the single-desk clearance system for industries, we are also planning to make it a tourist destination,' he added.

Stating that AP wants to replicate the Shanghai's Yangshan deep-water port, the Chief Minister said AP has deep-water port and plans to develop 10 other ports. 'Through this, we hope to become a global logistics hub,' he added.

SUMEC Group's executives said they will visit Andhra Pradesh in May before PM's visit to China and make agreements.