Tata's Big Bet on iPhones: To Build India's Largest Assembly Plant; Create 50,000 Jobs

In a strategic move that corresponds with Apple Inc.'s endeavour to broaden its manufacturing presence in India, the Tata Group is in the process of planning the construction of a substantial iPhone assembly facility. According to sources familiar with the matter, as reported by Bloomberg, the proposed plant is slated for Hosur, situated in the southern state of Tamil Nadu.

The detailed plan indicates an expansion of Apple's manufacturing operations in India, involving the establishment of around 20 assembly lines and the employment of 50,000 individuals within the initial two years of the Tata Group's operation. The timeline for making the facility operational is targeted for completion within 12 to 18 months.

It is worth noting that this development aligns with Apple's strategy to diversify its supply chain, decrease dependence on China, and strengthen collaborations with key partners such as Tata. The conglomerate already hosts an iPhone manufacturing unit in Karnataka, acquired from Wistron Corp. Apple engages with assembly and component manufacturers in various countries, including India, Thailand, and Malaysia.

Despite no official announcements from either company, reports from industry insiders speculate that the new plant will make a significant contribution to Apple's localized supply chain initiatives.

Simultaneously, Tata's commitment to deepening its association with Apple is evident on multiple fronts. At their existing Hosur facility, specializing in iPhone enclosures, there has been a significant increase in hiring, indicating a strengthening collaboration. This move is intended to double the size of their existing Hosur plant, presently employing over 15,000 people across 500 acres.

Post-expansion, the facility is expected to open employment opportunities for 25,000 to 28,000 workers, underscoring the project's potential impact on local job creation. This expansion, rooted in an initial investment of Rs 5,000 crore, is anticipated to be a major catalyst for the company's future growth.

Furthermore, Tata's dedication extends beyond manufacturing, with ambitious plans to introduce 100 retail stores exclusively dedicated to Apple products, further establishing their presence within the Apple ecosystem. This expansion mirrors Apple's growing retail footprint in India, with two stores already in operation and three more in the pipeline.

The developments around the new plant in Tamil Nadu also align with Prime Minister Narendra Modi's production-linked subsidies, offering incentives for key Apple suppliers like Foxconn and Pegatron to expand their operations in India. This initiative resulted in the assembly of over $7 billion worth of iPhones in India last year, significantly increasing the country's share in iPhone production to approximately 7 per cent.