Apple in Talks with Bharat Forge for Component Manufacturing in India

29 Jan 2025 CW Team

Apple has engaged in discussions with Bharat Forge, a company under the Kalyani Group, to explore the possibility of including them as a vendor in India. The partnership would involve Bharat Forge producing various components and mechanical parts for Apple. This move is part of Apple's broader strategy to expand its Indian supplier network, which already includes companies such as the Tata Group, Motherson Group, and Aequs.

Over the past two years, Apple has been working to increase local value addition and reduce its reliance on manufacturing in China. Apple’s manufacturing footprint in India consists of three iPhone assembly plants, with Foxconn operating the largest in Tamil Nadu, while Tata Group manages two additional facilities in Tamil Nadu and Karnataka.

Bharat Forge, a key player in Indian manufacturing with around 5,000 employees, is involved in diverse sectors such as forging, automotive, energy, construction, mining, railways, marine, aerospace, and defence. International suppliers from countries like China, Japan, and Taiwan have also established manufacturing operations in India.

Current Apple suppliers in India include Sunwoda for battery packs, Foxlink for cables, and Aequs for enclosures, while Salcomp has expanded its production to include coils, power packs, and magnetics. Additionally, Amperex Technology (ATL), a major supplier, is set to begin battery cell production at its 180-acre facility in Manesar, Haryana.

Apple’s expanded network of suppliers has enabled the company to achieve 20 per cent local value addition across various iPhone models, a significant increase from the 5-8 per cent local value addition when manufacturing under the PLI scheme began in 2020. In 2024, Apple produced iPhones worth $17.5 billion, with exports totalling $12.8 billion.

News source: The Times of India

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