BUSINESS

Tata is working on sophisticated, high-precision machinery to produce Apple iPhone casings, with the goal of reducing its reliance on China

According to insiders who talked with ET, Tata Electronics, a major participant in the assembly of enclosures for Apple iPhones in India, is now working on constructing sophisticated and complicated high-precision equipment used to create iPhone casings. In order to build these skills, the business has teamed up with two Indian manufacturers.

Going forward, it intends to sell this sophisticated machinery rather than continue importing it from China.
These devices may be used in the manufacturing processes of contract manufacturers that serve multinational corporations, such as Apple.

This action is anticipated to provide the government with a significant boost toward its goal of $300 billion in electronics exports by 2025.
The financial newspaper was informed by a source with knowledge of the events that “The Tata Group is testing these machines in a staged manner at their Hosur facility.” The goal is to increase its local capacity since the corporation wants to do more than simply construct enclosures; it wants to improve the nation’s environment. The firm wants to lessen its reliance on certain components, and these machines are only one of the numerous inputs that go into creating a component or enclosure.

Because it demonstrates India’s capacity to create sophisticated gear and lessen its need for imports, experts predict that this breakthrough will have a major positive impact on the country’s manufacturing narrative.
Co-founder of HCL, Ajai Chowdhry, highlighted how much need there is in the electronics sector for casings. “Everyone wants casings,” he said. There is a huge need for casings; thus, if Tata Group can produce these machines in India via import substitution, an industry would be created. Anyone in India who wants to build a phone or tablet has to produce casings for it, and if they can meet Apple’s strict requirements, the device itself will be a high-quality device.”
A source claims that different Indian firms are at different stages of preparedness and capacity to carry out the plan. This program is a component of the company’s worldwide plan to move away from certain low-tech elements and toward more complex ones in order to reduce dependency on them. The aim is to promote the nation’s industrial ecosystem while also diversifying and reducing the risks connected to interruptions in the global supply chain.
According to the source, home producers are now unable to employ Computer Numerical Control (CNC) equipment for precision components, despite the fact that CNC machines are extensively utilized in India across numerous industries.
According to the speaker, de-risking and diversifying the supply chain are top priorities for all parties involved, including the government, producers like the Tata Group, and the businesses themselves. According to an official, the Tata Group runs around 40 lines at its Hosur factory.
Two firms, one based in Bengaluru and the other in Pune, have partnered with the Tata Group, an official said.
One of the sources claims that although the Tata Group intends to export, it could take some time for this goal to materialize in practice.

“It’s called the maturity curve,” he said. “India needs more time until the export is completed. Firstly, they have to be sufficiently improved by the Tata Group for them to be put to use. Many Indian products are exported, but this particular project involves precision machinery, which is quite complex and will need time to mature.”
India Cellular & Electronics Association (ICEA) chairman Pankaj Mohindroo stressed the need for creating essential capital goods for the sector. He said, “We are working on developing India as a major assembly and component hub for electronics’ capital goods.”

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