Apple's Largest Facility In India: After Karnataka, Tata Plans iPhone Factory In Tamil Nadu

The Tata Group, a conglomerate, intends to establish one of the largest iPhone assembly factories in India, capitalising on Apple's goal to expand production here.

Tata has plans to build a factory in Hosur, located in Tamil Nadu, as per individuals familiar with the situation according to Economic Times. These individuals chose to remain anonymous as the plans have not been officially announced.

The proposed facility is expected to feature approximately 20 assembly lines and provide employment to 50,000 individuals within a span of two years. The aim is to have the factory up and running within a period of 12 to 18 months.

The establishment of the plant would enhance Apple's initiative to domesticate its supply chain and solidify its collaboration with Tata, which already operates an iPhone factory, previously owned by Wistron Corp., in the adjacent state of Karnataka.

Apple is broadening its operations beyond China by collaborating with assembly and component production partners in countries like India, Thailand, and Malaysia among others.

A representative from Apple chose not to comment, and a spokesperson from Tata did not respond to a request for a statement.

The Indian conglomerate is implementing various strategies to boost its partnership with Apple and diversify beyond its conventional operations spanning from salt to software. This includes ramping up recruitment at its existing Hosur facility, which manufactures iPhone enclosures or metal casings.

Tata has also announced plans to open 100 retail outlets specifically for Apple products. Meanwhile, Apple has already established two stores in the country and has plans for three additional ones.

The production-linked subsidies initiated by Prime Minister Narendra Modi have encouraged major Apple suppliers like Foxconn Technology Group and Pegatron from Taiwan to increase their operations in India.

This has facilitated Apple in assembling over $7 billion worth of iPhones in India in the last fiscal year, thereby raising India's proportion of the device's production to around 7 per cent. The remaining devices are assembled in China, which, until recently, was the sole producer.