Tatas aim 2X expansion of Apple iPhone-casing Hosur unit: Report

The Tata Group is reportedly looking to expand their iPhone-casing unit in Hosur to up to two times the size of the current plant. The Hosur unit that is constructed at an investment of Rs 5,000 crore and spread across 500 acres, employs over 15,000 people, which is expected to shoot up to 25,000-28,000 employees after the expansion. 

According to a report in The Economic Times, Tata Electronics aims to significantly expand its capability in contract manufacturing of high-end electronic items and accessories. The company had recently acquired Wistron’s iPhone assembly plant. 

A government official told the daily that the new facility could entirely be for Apple phone components, but the possibility of using the plant for other high-end phones of other companies cannot be ruled out. 

Tata Electronics scouted for land near its electronics manufacturing facility in Hosur earlier this year in May. An industry source confirmed the setting up of a major plant in Hosur for making phone components. 

Apple shortlisted Tata Electronics to be its vendor as it looks to diversify its manufacturing away from China. It has outsourced the manufacturing of iPhone enclosures to Tata Electronics.

Apple CEO Tim Cook, in the earnings call, earlier this month, called India and exciting market for the company as it recorded an all-time revenue record in India 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 Cook.

A recent report by Counterpoint also highlighted India’s June-September quarter sales soaring in India, as opposed to a flat YoY growth for the market. “Experiencing a high-growth phase in India, Apple recorded 34 per cent year-on-year (YoY) growth. Q3 2023 also marked the best quarter for Apple’s shipments in the country, which crossed 2.5 million units,” said Counterpoint’s Research Analyst Shubham Singh. 

Also read: Tata Electronics finalises 100% stake in Wistron India to become first Indian company to make Apple iPhones

Also read: Apple sees India as extraordinary market, lot of people moving into the middle class: CEO Tim Cook