Apple Supplier Salcomp To Double India Workforce, Eyes $2 Bn-$3 Bn Revenue By 2025

Apple’s contract manufacturer Salcomp reportedly plans to double its headcount in India to 25,000 by 2026 as it ramps up operations in the country.

The Finland-based Apple vendor is also eyeing annual revenue in the range of $2 Bn to $3 Bn by 2025, Salcomp India MD Sasikumar Gendham told reporters during an event in Chennai. 

Besides, the Finnish company is also setting up a housing complex for about 15,000 workers in the country.

The announcement comes at a time when Apple has been looking to develop alternate production hubs outside China to thwart any fallout from geopolitical tensions and pandemic restrictions that have hit manufacturing in the country.

“The whole supply chain is now kind of looking at an alternative. And India is poised to be one of the best alternatives… Everyone knows that the whole world has been depending on this one nation (China) over the last few decades and it’s time to really diversify and decluster,” Gendham was quoted as saying.

He added that Salcomp will have a ‘significant role’ in Apple’s supply chain going forward. 

The Apple supplier has been operating in India since 2020, when it took over the reins of its current Chennai facility from former owner and Finnish original equipment manufacturer (OEM) Nokia.

Since then, it has scaled operations at the production plant. Currently, Salcomp employs 12,000 people at its Chennai plant. 

The company largely manufactures chargers and other parts for smartphones. It currently claims to have a revenue of nearly INR 4,000 Cr from India operations. 

Apple’s ‘Make In India’ Push

Salcomp joins a growing list of Apple vendors and contract manufacturers that have shifted their base to India. 

The move has largely been the result of growing confrontations between Beijing and Washington in the recent past. Sweeping pandemic control norms and restrictions imposed by China in the past many months also brought production to a screeching halt at many such plants and the subsequent resumption has been slow. 

As a result, a large number of companies, including Apple, are looking at shifting some production outside China. Last month, one of Apple’s major suppliers, Jabil, began manufacturing AirPods components in India. The development came close on the heels of India granting initial approval to 14 Chinese Apple suppliers to establish assembly plants in India. 

Besides, Taiwan-based Foxconn is also planning to quadruple the workforce at its iPhone factory in India by 2024. 

Apart from production capabilities, Apple is also scaling up its presence in India to boost its sales. In an earnings call after the announcement of Apple’s financial results earlier this month, CEO Tim Cook said that the company continues to be bullish about India. He said Apple reported a record number of sales during the quarter despite macroeconomic headwinds. 

In January, it was also reported that the smartphone manufacturer was hiring for Apple Stores in India and was looking to launch these retail properties soon. 

At the end of December 2022, Apple accounted for 3.54% of the total Indian smartphone market. It competes with Samsung and Google in the high-end smartphone market. 

Earlier, JP Morgan estimated that Apple could outsource 25% of its iPhone production to India by 2025.

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