Strategic Move: Tata Aims to Establish India’s Largest iPhone Assembly Plant as Apple Expands Manufacturing Presence
Swift Timeline: Tata’s Ambitious Plan to Commence Operations at iPhone Assembly Plant in 12 to 18 Months
Tata Group, the conglomerate, is strategically positioning itself to construct one of India’s largest iPhone assembly plants, aligning with Apple’s overarching plans to enhance manufacturing activities in the country. The proposed facility is intended to be established in Hosur, located in the southern Tamil Nadu state.
Sources suggest that the plant could house approximately 20 assembly lines, with a workforce of around 50,000 employees expected within the initial two years of operation. Tata aims to have the plant operational within a swift timeline of 12 to 18 months, contributing to Apple’s broader strategy of localizing its supply chain.
This move further strengthens the collaboration between Apple and Tata, which already possesses an iPhone factory acquired from Wistron in the neighboring Karnataka state. As Apple endeavors to diversify its operations beyond China, this venture underscores its commitment to working with manufacturing partners in India, Thailand, Malaysia, and other regions.
An Apple spokesman declined to comment, while a Tata representative didn’t respond to a request for comment.
The Indian conglomerate has taken other steps to increase its business with Apple and expand beyond its traditional businesses that range from salt to software. It has accelerated hiring at its existing facility in Hosur, where it produces iPhone enclosures, or metal casings. Tata has also said it’ll launch 100 retail stores focused on Apple products. For its part, Apple has opened two stores in the nation and is planning three more.
Prime Minister Narendra Modi’s production-linked subsidies have spurred Apple’s key suppliers such as Taiwan’s Foxconn and Pegatron to ramp up in India. That helped Apple assemble more than $7 billion of iPhones in India in the previous fiscal year, increasing the country’s share of the device’s production to about 7 percent. The rest are assembled in China, which until a few years ago made all of them.
Apple and Tata could likely urge the government to award subsidies for the new factory as it’s expected to begin production just as previous state-backed financial incentives are set to expire.
