Tata Group’s Strategic Expansion in Tamil Nadu
The Tata Group announces the opening of a new iPhone assembly facility in Hosur, Tamil Nadu, marking a significant advancement in Apple’s Indian expansion efforts. Scheduled to commence operations in the festive quarter of 2024, this state-of-the-art plant will employ over 50,000 workers, predominantly women, highlighting a substantial employment boost in the region.
Investment and Infrastructure
Set on a sprawling 250-acre site, the plant will utilize components sourced from Tata Electronics, a subsidiary that established its base a few years prior. With an investment of ₹6,000 crore, Tata’s new facility represents a deepening commitment to reinforce India as a key player in the global manufacturing landscape. This follows Tata’s acquisition of Taiwanese electronics giant Wistron’s operations in India for $125 million last year, a move that expanded Tata’s footprint in the electronics manufacturing sector alongside major players like Foxconn and Pegatron.
Apple’s Deepening India Footprint
This plant in Tamil Nadu complements another facility in Karnataka, previously owned by Wistron, underlining Tata’s growing partnership with Apple in India. As part of Apple’s strategy to diversify its production base and decrease reliance on Chinese manufacturing, the company is keen to boost its Indian production capabilities to over 50 million iPhones annually. This strategic shift is evident as Apple begins training for the upcoming launch of the iPhone 16 Pro and Pro Max at the Foxconn-operated Sriperumbudur factory, ensuring that these models are available in India concurrently with their global launch. This initiative mirrors the successful simultaneous launch of the iPhone 15 last year.
Foxconn continues to expand its Indian investments, with current contributions reaching $1.4 billion and business surging to $10 billion in the last fiscal year. Apple’s operations in India also saw significant growth, achieving a valuation of $23.5 billion in FY24, which underscores the escalating importance of the Indian market in Apple’s global strategy.
