In a significant development, Tata Group, the sprawling Indian conglomerate, is gearing up to establish one of the country’s largest iPhone assembly plants, aligning with Apple’s strategic push to bolster manufacturing operations in India.
The proposed facility is slated to be constructed in Hosur, located in the southern state of Tamil Nadu, as per sources familiar with the matter. These individuals, who opted to remain anonymous while discussing unannounced plans, indicate that the assembly plant is envisioned to house approximately 20 assembly lines, employing a workforce of around 50,000 within the next two years. The ambitious goal is to make the site operational within a span of 12 to 18 months.
This move marks Tata’s proactive step to contribute to Apple’s objectives of localizing its supply chain and strengthening its collaboration with the Indian conglomerate. Tata Group already operates an iPhone manufacturing unit, acquired from Wistron, in the neighboring state of Karnataka. Apple, in its strategy to diversify operations beyond China, has been actively engaging with assembly and component manufacturing partners in countries like India, Thailand, Malaysia, and others.
Both Apple and Tata refrained from providing official comments on the matter.
Tata Group has not only shown interest in establishing the new assembly plant but has also taken additional measures to boost its association with Apple. The conglomerate has ramped up hiring at its existing facility in Hosur, primarily engaged in the production of iPhone enclosures or metal casings. Furthermore, Tata has announced plans to launch 100 retail stores exclusively focused on Apple products. Meanwhile, Apple has initiated the opening of two stores in India and has plans for three more.
The manufacturing push aligns with Prime Minister Narendra Modi’s production-linked subsidies, incentivizing key Apple suppliers such as Foxconn and Pegatron to escalate their operations in India. This has facilitated Apple in assembling iPhones worth over $7 billion in the previous fiscal year, elevating the country’s share in the device’s production to approximately 7 percent. It is a notable shift from the earlier scenario where China exclusively handled the assembly of all iPhone.
