Tata Group is planning to expand the workforce at its electronics facility in southern India that manufactures iPhone components by tens of thousands of workers in an effort to bolster business with Apple Inc, according to a Bloomberg report.
In order to set up additional production lines, the plant in Tamil Nadu's industrial town of Hosur would employ up to 45,000 women workers within 18 to 24 months, according to sources with insight into the situation. About 10,000 people, mostly women, are employed by the plant that makes iPhone housings, or the casings that keep the gadget together.
The salt-to-software conglomerate is one of the Indian businesses attempting to gain from Apple's supply chain diversification outside of China. Even though India only produces a small portion of iPhones and their parts, the country is making progress in its competition with China, which is battling Covid-related lockdowns and political tensions with the US.
The Hosur facility, which spans more than 500 acres, reportedly employed 5,000 women in September, including those from indigenous tribal villages. To reduce the gender gap in the workforce, Indian businesses are looking to recruit more women.
According to the sources, women at the Hosur facility receive gross earnings of slightly over Rs 16,000 ($194) a month, which is approximately 40 percent higher than the industry average for Indian workers who use their hands or tools for assembly.
The agency reported that Tata also intends to offer training and education and that the employees receive free food and accommodation on campus.
India's burgeoning electronics sector is attempting to take advantage of China's challenges to deal with the pandemic. Foxconn Technology Group, Apple's primary manufacturing partner, is struggling with growing concerns that a Covid flare-up at its major Chinese facility will disrupt output before the crucial holiday shopping season.
Foxconn, along with other Taiwanese contract manufacturers Wistron Corp and Pegatron Corp, has upped iPhone production in India as part of a strategy to diversify beyond China. This move has also been supported by Prime Minister Narendra Modi's financial incentives programs. This has helped to increase iPhone exports from South Asian country.
Increased domestic component production would support India's efforts to penetrate deeper into the technology supply chain. According to Bloomberg Intelligence, rival iPhone housing suppliers include Lens Technology Co, Jabil Inc, and Lingyi iTech Guangdong Co.
Separately, sources with access to the matter stated in September that Tata Group is in discussions with Wistron to create an electronics manufacturing joint venture with the goal of assembling iPhones in India.
(With inputs from Bloomberg)
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