Tata Group to double the iPhone casing manufacturing capacity in Hosur plant to meet growing demand

Tata Group is actively doubling the size of its iPhone casing unit in Hosur as per a report, reflecting a strategic move to meet Apple's growing demand and expand its manufacturing capabilities in India.

Tata Group plans to double the size of its iPhone casing manufacturing plant in Hosur. (REUTERS)

The Tata Group is actively pursuing an expansion of its iPhone-casing unit in Hosur, aiming to increase the size of the current plant by up to two times. The existing Hosur unit, established with a Rs. 5,000 crore investment and sprawling across 500 acres, currently employs over 15,000 individuals. Following the expansion, the workforce is expected to grow substantially, reaching between 25,000 and 28,000 employees.

Strategic Partnership with Apple

Apple, in a strategic move to diversify its manufacturing beyond China, selected Tata Electronics as its vendor for the production of iPhone enclosures. The Economic Times reports that Tata Electronics is set to significantly enhance its capabilities in the contract manufacturing of high-end electronic items and accessories. Notably, the company recently acquired Wistron's iPhone assembly plant.

A source cited by the publication stated, "The new facility could be entirely dedicated to Apple phone components, but the possibility of manufacturing components for other high-end phones of different companies cannot be ruled out."

According to a government official, the new facility may exclusively focus on Apple phone components, but there is a potential for utilizing the plant for manufacturing components for other high-end phones from various companies.

Tata Electronics initiated the search for additional land near its existing electronics manufacturing facility in Hosur in May of this year. An industry insider has confirmed the establishment of a significant plant in Hosur dedicated to producing phone components.

During an earnings call earlier this month, Apple CEO Tim Cook expressed excitement about India as a market, noting the company's all-time revenue record in the June-September quarter. Cook emphasized India's potential, stating, "We see an extraordinary market- a lot of people moving into the middle class."

Record-Breaking Sales in India

A recent report by Counterpoint highlighted the significant growth in Apple's sales during the June-September quarter in India, recording a 34 percent year-on-year growth. This period marked the best quarter for Apple's shipments in the country, surpassing 2.5 million units, according to Counterpoint's Research Analyst Shubham Singh.