Tata Group Accelerates Apple's India Expansion With Plans For New iPhone Factory

Tata Group is set to construct one of the country's largest iPhone assembly facilities, in line with Apple Inc.'s efforts to boost its manufacturing presence in the South Asian nation.

Tata Group is planning to build the factory in Hosur, located in the southern state of Tamil Nadu, as per a report by Bloomberg. The plant is expected to feature approximately 20 assembly lines and is expected to hire 50,000 employees within a two-year timeframe, according to the sources cited in the report.

In its drive to localize the supply chain, Apple aims to fortify its partnership with Tata through the establishment of this plant. Tata already owns an iPhone factory acquired from Wistron Corp. in Karnataka. Apple's strategy involves diversifying its operations beyond China, with collaborative efforts in assembly and component manufacturing spanning across countries like India, Thailand, Malaysia, and others.

Taking steps to enhance its association with Apple and broaden its scope beyond traditional ventures, the Indian conglomerate has expedited hiring at its existing Hosur facility, where it manufactures iPhone enclosures, specifically metal casings. Alongside, Tata has disclosed intentions to establish 100 retail stores dedicated to Apple products. In parallel efforts, Apple has inaugurated two stores in the nation and is currently in the planning stages for three more.

The production-linked incentives introduced by Prime Minister Narendra Modi have prompted major Apple suppliers like Taiwan's Foxconn Technology Group and Pegatron Corp. to scale up their operations in India. This has facilitated Apple in the assembling process of iPhones worth over $7 billion within the past fiscal year, elevating the country's contribution to the device's production to approximately 7 per cent. In contrast, the remaining iPhones are manufactured in China, which, until a few years ago, exclusively handled the entire production.

The upcoming facility is expected to fall within the mid-sized category among iPhone factories worldwide. It is anticipated to surpass the size of the one Tata obtained from Wistron, employing over 10,000 individuals, and be smaller than Foxconn's largest facilities in China, which boast hundreds of thousands of employees.