A piece of big news is coming from the TATA GROUP that it is setting up the smartphone manufacturing unit in Tamil Nadu. It will manufacture Apple products components in India. The plant will set up at the Industrial Complex area of Hosur, Tamil Nadu. The cost of building this phone components manufacturing plant is around Rs 5000 crore.
The new subsidiaries of the TATA group i.e. TATA electronics will be manufacture on a 500-acre land. This 500-acre land is given by the Tamil Nadu Industrial Development Corporation. The Bhumi pujan of this land was done Tuesday.
According to the company officials, the investment might get high up to Rs 8000 crore. This all depends on the facility and technology that will be implemented while building the plant.
What Tata Group Will Manufacture in this new plant?
Basically, it will build phone components, more precisely the apple smartphone components. Since Apple is trying to diversify its source base from china. Currently, all the apple components are manufacture in china only assembly part takes place in India.
Foxconn is already assembling the iPhone 11 handsets the facility locates on the outskirts of Chennai.
Current scenario of Apple product assembly in India. Apple is in contract with Foxconn, Wistron and Pegatron for manufacturing iPhone in India. On the other hand, Tata electronics will manufacture as well as assemble the iPhone components in India.
The new plant will have a strength of 18000 people by Oct 2021. This will create a huge job opportunity for peoples. Out of which 90% of the staff comprises of women in this plant.
How Tata comes under the electronic manufacturing sector?
PM Narendra Modi announces the PLI scheme where the smartphone manufacturing companies will get subsidy up to 6%. So Tata took the advantage of this scheme and get his hands over the electronics product manufacture.
In order to deepen India’s electronic manufacturing base and achieving self-sufficiency in the manufacturing of mobile handsets.
Productivity Linked Incentive (PLI) Scheme
In this scheme, the manufacturers get 4-6% of the incentive in manufacturing mobile phones, thyristor, resistor, electromechanical system, and nanoelectronic components.
According to this scheme, companies who are building smartphones above Rs 15000 will get an incentive of 6% on incremental sales of all such phones which will make in India.
There was intense competition between Tamil Nadu and Karnataka in getting hands on this project. But in the end, Tamil Nadu gets this project due to its favorable policies. Also, companies like Foxconn, Dell, Nokia, Samsung, and others are the few manufacturing companies present in Tamil Nadu.
The Tamil Nadu government recently releases the Electronic Hardware Manufacturing Policy 2020. In this policy, the state government has set its goal to increases the electronic industry output by $100 billion by 2025. This will contribute 25% of India’s total electronic export by 2025.