Adani Enterprises rallies on talks of JV with Foxconn

NEW DELHI: Shares of Adani Enterprises surged as much as 8.85 per cent in trade on Wednesday, after the flagship company of the Adani Group, said it's in talks with Foxconn to form a manufacturing joint venture (JV) but no agreement had been signed as yet.

Adani Enterprises Ltd hit a low of Rs 95.50 and a high of Rs 102.75 in trade today on the BSE.

The stock ended the day 4.61 per cent higher or Rs 4.35 at Rs 98.75.

The company, however, did not clarify on the nature of the JV or the products that it will manufacture. Sources said Foxconn could locate a plant and data centre at Adani's SEZ in Mundra, and use the Adani Port to bring in heavy machinery, said an ET report.

The report further added quoting sources that the company would establish its supply chain and the entire ecosystem ranging from software, hardware to ancillary units in the country as it prepares to develop India as a solid manufacturing and export base.

Foxconn Technology Group is planning to invest over $2 billion (Rs 12,800 crore) initially to establish manufacturing plants in India over the next five years.

The investment will be carried out to produce mobile devices, TVs, electronic products, batteries and key electronic components, among others, which could make it the biggest foreign investor in the government's 'Make in India' programme so far.