Tata’s INR 6K Cr iPhone Unit To Kick Off Operations In November

Salt-to-software conglomerate Tata Group is gearing up for its second iPhone assembly unit in India, tapping Apple’s ambition to increase manufacturing in the country.

The upcoming iPhone factory will be built in Hosur, Tamil Nadu, and is expected to go operational in November, Business Standard reported, citing sources.

Tata Electronics is expected to invest INR 6,000 Cr in the upcoming factory with plans underway to launch iPhones from the new factory, which also houses a components unit.

The new factory would be Tata Electronics’ second iPhone assembly plant in India and Apple’s fourth. In October last year, the company acquired Apple vendor Wistron’s production plant for $123 Mn.

These facilities are expected to generate employment opportunities for approximately 50,000 people, mostly women, with the assembly units alone employing 35,000-40,000 workers.

It is pertinent to note that Tata Electronics already has a manufacturing plant in Hosur, where it makes outer cases of iPhones. The upcoming iPhone assembly factory would bolster Apple’s efforts to localise the supply chain and strengthen the partnership between the two parties.

Tata also plans to launch 100 retail outlets that will be exclusively dedicated to Apple products. 

Earlier, it was also reported that Tata Group was in the final stages of acquiring Pegatron’s India operations, including an iPhone manufacturing plant near Chennai and another under-construction unit.

The development comes at a time when Apple is making an aggressive play to expand operations in India as it shifts its existing supply chain away from China. Now, 1 in 7 iPhones are manufactured in India with Apple also domestically sourcing components that go inside.

Further, Apple is said to be in advanced talks with Murugappa Group and Tata Group’s Titan to make iPhone camera modules in the country.

Additionally, the tech giant is also reportedly looking to begin manufacturing iPhone Pro and Pro Max models in India, starting with the iPhone 16 series as early as this fiscal year. 

Apart from iPhones, Apple is also considering manufacturing other flagship devices, iPads and AirPods in the country. 

And it looks like Apple’s India push is paying off, with the iPhone maker’s annual sales in India hitting nearly $8 Bn in the 12 months through March 2024.