In a significant move that aligns with Apple Inc.’s strategy to diversify its manufacturing base, Tata Group plans are gearing up to construct one of India’s largest iPhone assembly plants in Hosur, Tamil Nadu. This initiative, reported by Bloomberg, marks a substantial step in strengthening India’s position in the global technology manufacturing sector.
Strategic Location and Capacity
The chosen location for the plant, Hosur, is strategically situated in the southern state of Tamil Nadu. The facility is anticipated to encompass around 20 assembly lines and is projected to generate employment opportunities for about 50,000 individuals over the next two years. Sources indicate that the plant could become operational within 12-18 months, rapidly enhancing Apple’s manufacturing capabilities in India.
Bolstering Apple’s Supply Chain in India
This prospective plant is more than just an expansion of Apple’s manufacturing footprint; it’s a key element in the tech giant’s localizing supply chain strategy. Currently, Tata oversees an iPhone manufacturing unit in Karnataka, initially acquired from Wistron Corp. The establishment of the Hosur plant is a continuation of this deepening collaboration between Tata and Apple.
Diversification Beyond China
Apple’s shift in manufacturing bases is a clear move to diversify operations beyond China. By building partnerships in India, Thailand, Malaysia, and other regions, Apple is not only mitigating geopolitical and supply chain risks but also tapping into new markets and talents.
Ambitious Production Goals
As per a Wall Street Journal report, Apple and its suppliers aim to manufacture over 50 million iPhones annually in India in the next two to three years. This ambitious goal underscores the importance of the Indian market in Apple’s global strategy.
Tata’s Expanding Role
Tata Group Plans, known for its diverse operations, has been proactive in expanding its partnership with Apple. Beyond the manufacturing unit, Tata Group plans to open 100 retail outlets for Apple products in India. This expansion complements Apple’s retail growth in the country, with two stores already operational and three more in the pipeline.
Government Incentives and Economic Impact
Prime Minister Narendra Modi’s production-linked incentives (PLIs) have catalyzed this growth, attracting key Apple suppliers like Foxconn Technology Group and Pegatron Corp. to expand their presence in India. With iPhone assembly in India surpassing $7 billion in the previous fiscal year, the country is capturing a significant share of the global production market.
Looking Ahead
The new Hosur plant, poised to be a mid-sized entity among Apple’s global manufacturing facilities, represents a significant step in Tata’s and India’s journey toward becoming a hub for high-tech manufacturing. As the plant begins operations, it is expected to solidify further India’s position as a key player in the global technology supply chain.