Tata plans new iPhone factory to hasten Apple’s India expansion

BLOOMBERG

Conglomerate Tata Group plans to build one of India’s biggest iPhone assembly plants, tapping Apple Inc’s ambitions to increase manufacturing in the South Asian country.
Tata wants to construct the factory in Hosur in the southern Tamil Nadu state, according to people with knowledge of the matter. The facility will likely have about 20 assembly lines and employ 50,000 workers within two years,
according to the people, who declined to be named discussing unannounced plans. The goal is for the site to be operational in 12 to 18 months.
The plant would bolster Apple’s efforts to localise its supply chain and strengthen its partnership with Tata, which already has an iPhone factory it acquired from Wistron Corp in the neighbouring Karnataka state. Apple is diversifying its operations away from China by working with assembly and component manufacturing partners in India, Thailand, Malaysia and elsewhere.
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.
The new plant is set to be mid-sized among iPhone factories globally. It would likely be bigger than the one Tata acquired from Wistron, which employs more than 10,000 people, and smaller than Foxconn’s biggest China facilities that employ hundreds of thousands.

 

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