Tata Electronics Gets Show Cause Notice Over iPhone Plant Fire

The Tamil Nadu government has issued a show cause notice to Tata Electronics following a major fire that broke out at its iPhone manufacturing plant in Hosur late last month.

As per ET, the notice, sent under the Directorate of Industrial Health and Safety (DISH), has sought explanation from the company over the incident within a week, unless an extension is sought.

“It is a procedural measure that is done in such instances so as to give the company a chance to explain what went wrong,” a source told ET.

According to the Factories Act, an occupier is the individual who holds ultimate responsibility for a factory’s operations, including the health, safety, and welfare of its workers. In the case of a company, one of the directors can be deemed the occupier.

“The show cause notice also mentions that the fire broke out because of the failure of the thermostat control at the anodising plant and asks Tata Electronics to share their findings,” a second source told ET.

Last month, a major fire broke out at Tata Electronics’ iPhone plant in Tamil Nadu’s Hosur during week hours, temporarily disrupting the operations.

The fire spread through the air duct, completely destroying the anodising facility, according to the probe report, which has also been shared with Tata Electronics executives.

Back then, the report stated that the findings of the probe would be submitted to the DISH for review once the investigation is completed.

It is pertinent to note that the fire disrupted operations at the iPhone plant. In response, Apple sent a Supplier Responsibility (SR) team to evaluate the situation and offer guidance to the contract manufacturer. 

Earlier this month, Tata Electronics announced plans to partially resume operations at the facility. 

In recent years, India has become a key manufacturing hub as Apple seeks to diversify its production beyond China. Currently, one in seven iPhones is manufactured in India, with the company planning to produce around 25% of its iPhones in the country over the next 3-4 years. As per reports, Apple will be manufacturing the entire range of its recently launched iPhone 16 in India.

Besides, India is also a big market for Apple. The company’s annual sales in the country touched the $8 Bn mark in FY24. Amid the growth in sales, the company is said to be preparing to open four new retail stores in India.

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