Bharat FIH plans factory reset on board, order woes
Foxconn group's Bharat FIH is weathering a rough spell, having lost three independent directors in the last three months, people aware of developments told ET.
The company is also likely to shutter its manufacturing facility in Sri City, Andhra Pradesh, due to a massive drop in orders from key client Xiaomi, they said. Industry watchers feel Bharat FIH was too dependent on the Chinese smartphone maker and did not keep up with the competition.
Among those who have exited the Bharat FIH board are InterGlobe Aviation chairman Venkataramani Sumantran, Sify Technologies cofounder Ramaraj R, and former IT and telecom secretary Aruna Sundararajan.
«There is lack of clarity in the organisation's way forward. The company seems to be on a path of decline,» said one of the board members, citing it as the main reason for the recent resignations.
Foxconn employment row: Trade unions gather info on recruitment exercise at Tamil Nadu plant
While Sumantran and Ramaraj left in March, Sundararajan resigned a month ago, according to the people cited above.
ET was unable to ascertain if Dipali Hemant Sheth, another independent member of the Bharat FIH board, too has resigned. Sheth serves on the boards of various companies, including Adani Wilmar and UTI AMC.
Taiwanese contract manufacturer Foxconn is expanding its Indian operations — specifically production of the iconic iPhone — through other subsidiaries, but little of that work has come Bharat FIH's way, according to one person in the know.
The Sri City
