Tata Group is planning to construct a large iPhone assembly plant in Hosur, Tamil Nadu, as part of Apple Inc’s efforts to expand its manufacturing presence in India. According to sources, the proposed facility will be one of the largest in the country and will include around 20 assembly lines, employing 50,000 individuals within the first two years of operation. The plant is expected to be commissioned within 12 to 18 months. This move aligns with Apple’s strategy to diversify its supply chain, reduce reliance on China, and strengthen partnerships with major players like Tata. While no official announcements have been made, industry insiders speculate that the new plant will significantly contribute to Apple’s local supply chain efforts. Tata Group has also shown dedication to strengthening its relationship with Apple, evident through increased hiring at their existing Hosur facility and plans to double its size. This expansion, backed by an initial investment of Rs 5,000 crore, is expected to create employment opportunities for 25,000 to 28,000 workers and drive the company’s future growth.
Furthermore, Tata’s dedication goes beyond just manufacturing as they have ambitious plans to establish 100 exclusive retail stores for Apple products. This move not only strengthens their presence within the Apple ecosystem but also mirrors Apple’s own expanding retail footprint in India. Currently, Apple has already set up two stores in India and has three more in the works.
Moreover, the development surrounding the new plant in Tamil Nadu aligns with Prime Minister Narendra Modi’s production-linked subsidies. These subsidies serve as an incentive for key Apple suppliers like Foxconn and Pegatron to expand their operations in India. As a result, India witnessed the assembly of iPhones worth over $7 billion last year, marking a significant increase and elevating India’s share in iPhone production to approximately 7 percent.
While the new plant is positioned as a mid-sized facility on a global scale, it is expected to surpass Tata’s Wistron facility, which currently employs more than 10,000 individuals. However, it will still be smaller in comparison to Foxconn’s largest facilities in China, which provide employment to hundreds of thousands of people.
Considering that the construction of the plant coincides with the expiration of state-backed financial incentives, Apple and Tata are likely to explore potential government subsidies to support this new venture.