Tatas plan 2x expansion of its Hosur iPhone-casing unit

Tata Group’s Tata Electronics is looking to expand its existing iPhone-casing unit in Hosur to up to two times the size of the current plant, multiple sources in the know of the development told ET.

The company, which recently acquired Wistron’s iPhone assembly plant at Narasapura in Karnataka’s Kolar district, aims to significantly expand its capability in contract manufacturing of high-end electronic items and accessories, a source said.

At present, the Hosur unit, constructed at an investment of Rs 5,000 crore, is spread across 500 acres and employs more than 15,000 people. With the expanded unit, which could take about 12-18 months to be completed, the Hosur unit is likely to employ 25,000-28,000 people in one place, another source said.

“The company is looking to expand the unit to 1.5-2 times the current size and capacity,” a senior government official told ET.

“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,” the official said.

Earlier this year in May, ET had reported that Tata Electronics was scouting for land near its electronics manufacturing facility in Hosur.


“Tata Electronics setting up a major plant in Hosur — that is fairly well confirmed. It is for making phone components as it is possible that Apple has set a huge target for exports from India and hence this facility could be used for that,” an industry source told ET on the condition of anonymity.

Also read | For workers at this iPhone plant, Tata means a fresh start

A technology market analyst ET spoke to agreed that the expansion ties into Apple's larger strategy to focus on smartphone manufacturing in India.

“Tata Electronics mainly caters to the export demand of Apple — which has been going up,” he explained. “We’ve heard from the supply side that Tata Electronics is increasing volumes.”

Tata Electronics is the only homegrown company that has been shortlisted by Apple to be its vendor as it looks to diversify its manufacturing away from China. Apple has outsourced the manufacturing of iPhone enclosures to Tata Electronics.

Apple overtook Samsung to emerge as the largest smartphone exporter from India in the second quarter.

In September, ET had reported that Apple shipped 49% of the country’s total 12 million shipments in the June quarter compared to its Korean rival’s 45%.

As per the latest estimates earlier this week, the Cupertino-headquartered company has exported iPhones of over $5 billion in value in the first seven months of FY24 (April-October) from India, clocking a year-onyear growth of 177%.

“Being part of the Tata Group, Tata Electronics has the resources to scale up and satisfy Apple’s growing export demands,” he explained.