SUMMARY
A report by Reuters said the conglomerate is in advanced talks with the Taiwanese iPhone manufacturer in India
The companies will jointly operate Tata’s iPhone manufacturing plant in Tamil Nadu’s Hosur
Pegatron accounts for a tenth of Apple’s annual iPhone production in India
In a bid to expand its iPhone manufacturing unit across India, salt-to-software conglomerate Tata Group has been in advanced discussions with Taiwanese electronics major Pegatron to form a joint venture for setting up its second such facility in Tamil Nadu’s Hosur city.
Currently, Tata runs its single iPhone assembly plant in Karnataka. In November last year, the company completed the acquisition of Wistron’s manufacturing facility in the state, marking its foray into assembling Apple iPhones.
The move will likely help Tata to speed up its plans to start iPhone manufacturing and help Apple expand its operations in India. The Taiwanese company would provide technical and engineering support at the Hosur plant, Reuters reported, citing sources close to the matter.
It is pertinent to mention here that independently, Pegatron already operates an iPhone assembly plant in Tamil Nadu and is in talks to add a second facility. It currently accounts for about 10% of Apple’s iPhone output in India, with Taiwan’s Foxconn accounting for most of the rest.
This comes close on the heels of Tata Group gearing up to build one of India’s largest iPhone assembly plants in Hosur, tapping Apple Inc’s aim to broaden its manufacturing presence in the country.
The facility is expected to house around 20 assembly lines and aims to create job opportunities for around 50,000 workers within the next two years.
This shift in the manufacturing base aligns with Apple’s broader strategy to diversify operations beyond China by cultivating partnerships across India, Thailand, Malaysia and other regions.
To be sure, the conglomerate became the first Indian company to enter iPhone production.
Meanwhile, tech major Apple shipped more than 10 Mn iPhones last year, clinching the top smartphone brand by revenue in India, surpassing its Korean rival Samsung.
Apple’s India business has recorded a revenue of INR 49.3K Cr (almost $6 Bn) in FY23. According to RoC filings, its net profit surged 76% to INR 2,229 Cr in FY23 from INR 1,263 Cr in the previous fiscal year.
Recently, Apple’s CEO Tim Cook said that its India business logged the highest revenue in the December quarter driven by increased iPhone sales and higher adoption of its products by enterprises.
Apple’s expanding presence in India was highlighted by the inauguration of its fully-owned retail outlets, the Apple BKC Store in Mumbai and Apple Saket Store in Delhi, both generating monthly revenues of approximately INR 22-25 crore. Apple plans to expand its retail footprint to more Indian cities.
Meanwhile, Apple inaugurated its second office in Bengaluru, a 15-floor LEED Platinum-certified building capable of accommodating 1,200 employees, signalling a positive start to the year 2024.
