Tata Group Aims for Substantial Growth as it Plans to Expand iPhone Casing Manufacturing Facility in Hosur, India, Envisaging a Potential Doubling of the Plant’s Size and Adding Employment Opportunities for 28,000 Workers
The Tata Group is undertaking a substantial expansion of its iPhone-casing manufacturing facility in Hosur, India. The proposed expansion envisions doubling the size of the current 500-acre plant, which presently employs over 15,000 people. This initiative is expected to significantly increase the workforce to a range between 25,000 and 28,000 employees. The original Hosur facility was established with a Rs 5,000 crore investment.
According to a report from The Economic Times, Tata Electronics aims to enhance its presence in the high-end electronics manufacturing sector by leveraging the capabilities of its newly acquired iPhone assembly plant. This strategic move is anticipated to accelerate the company’s growth.
The report indicates that the expanded plant will predominantly focus on producing components for Apple phones. However, it also highlights the plant’s versatility, with potential capabilities for manufacturing high-end phones for other companies, providing flexibility and diversification opportunities.
“The new facility could be entirely for Apple phone components, but I would not rule out the possibility of it being used to manufacture components for other high-end phones of other companies as well,” stated a source cited in the report.
Tata Group’s decision to expand its manufacturing capacity and workforce follows its recent acquisition of Wistron’s iPhone assembly plant in Karnataka’s Kolar district. This acquisition positions Tata as India’s first domestic iPhone manufacturer.
As Tata gears up for significant expansion in high-end electronics production, industry analysts note that this aligns with Apple’s broader strategy of shifting smartphone manufacturing to India, a move aimed at diversifying its manufacturing base away from China.
Apple’s commitment to manufacturing in India is a strategic decision, considering the country’s status as a key market for the company. During an earnings call, Apple CEO Tim Cook emphasized India’s significance, citing the company’s record revenue in the June-September quarter.
“We had an all-time revenue record in India, we grew very strong double digits. It’s an incredibly exciting market for us and a major focus of ours. We have low share in a large market and so it would seem that there’s a lot of headroom there… We see an extraordinary market—a lot of people moving into the middle class,” said the Apple CEO.
A recent report by Counterpoint underscores India’s growth trajectory, with sales surging in the June-September quarter, in contrast to the overall market stagnation. Apple’s performance in India reflects this trend, showing a robust 34 percent year-on-year growth rate. In Q3 2023, Apple achieved a milestone by setting a new record for shipments in India, surpassing 2.5 million units.
