Bharat FIH shuts R&D and supply chain subsidiary amid revenue decline

  • Industry News
  • Nov 21,24
In 2021, Bharat FIH had established two subsidiaries—Bharat Taiwan Corporation and Rising Stars Hi-Tech—to enhance research, product development, and engineering capabilities.
Bharat FIH shuts R&D and supply chain subsidiary amid revenue decline

Bharat FIH, part of the Foxconn Group, has decided to shut down Bharat Taiwan Corporation, a subsidiary launched three years ago to focus on R&D and supply chain services, due to ongoing revenue declines. The decision, confirmed in a recent filing, comes after years of decreasing revenues, prompting the company to consolidate its operations and reduce costs.

In 2021, Bharat FIH had established two subsidiaries—Bharat Taiwan Corporation and Rising Stars Hi-Tech—to enhance research, product development, and engineering capabilities. However, the company is now scaling back its operations amid a slump in revenue and profitability. This marks the first public acknowledgment of Bharat FIH’s challenges, which stem from a slowdown in orders from its primary client, Xiaomi, following increased scrutiny of Chinese businesses in India.

Xiaomi has historically accounted for the majority of Bharat FIH’s revenue, contributing up to 96% of its income in 2021. The company’s income dropped significantly in recent years, with total income falling from Rs 266.69 billion in FY20 to Rs 121.28 billion in FY23, resulting in a net loss of Rs 330 million.

Founded in 2015 as Rising Stars Mobile India, Bharat FIH initially focused on manufacturing mobile devices and components. The company expanded its operations to multiple locations in Tamil Nadu and has since employed over 25,000 people, with 90% of them being women. However, reports suggest that it may also close its manufacturing facility in Sri City, Andhra Pradesh, due to a sharp decline in orders.

Despite these setbacks, Bharat FIH is exploring new business opportunities beyond mobile manufacturing, such as in electric vehicles, televisions, and other high-growth sectors. However, the company has not specified a timeline for these plans. Additionally, Bharat FIH has experienced leadership departures, including its former Managing Director, Josh Foulger and several independent directors.

(Financial Express)

Related Stories

Auto & Auto Components
NavPrakriti Opens East India’s First Lithium-Ion Battery Recycling Plant

NavPrakriti Opens East India’s First Lithium-Ion Battery Recycling Plant

NavPrakriti’s plant focuses on the recovery of aluminium and copper with various intermediary products rich in nickel, cobalt, manganese, and lithium, laying the groundwork for future hydrometallu..

Read more
Policy Regulation
India’s Decarbonisation Journey: Turning Climate Challenge into Opportunity

India’s Decarbonisation Journey: Turning Climate Challenge into Opportunity

While decarbonisation is increasingly becoming a prerequisite to access premium global markets, India's path to net-zero by 2070 is complex. However, with coordinated action, strategic investments, ..

Read more
Electrical & Electronics
Aimtron Electronics wins $3.9 mn international IoT order for 200,000 devices

Aimtron Electronics wins $3.9 mn international IoT order for 200,000 devices

This deal marks a significant milestone in Aimtron’s global expansion, demonstrating its capability to deliver complete box-build solutions that meet international standards.

Read more

Related Products

Integrated Electric Gripper S Series

ELECTRICAL & ELECTRONIC EQUIPMENT

IBK Engineers Pvt Ltd offers a wide range of integrated electric gripper S series.

Read more

Request a Quote

Geared Electric Motors

ELECTRICAL & ELECTRONIC EQUIPMENT

Delco Fans Pvt Ltd offers single phase capacitor run and three phase geared Instrument motors, totally enclosed face/foot mounted.

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016