SUMMARY
Apple’s contract manufacturers and suppliers, including Foxconn, Tata, and Salcomp, are spearheading initiatives to provide housing for their employees
The plan includes the construction of over 78,000 units, with Tamil Nadu slated to receive the majority, around 58,000 units
The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is leading the construction of most housing units
Apple’s ecosystem, which had already created 150,000 direct jobs in India in the past two and a half years, is now shifting focus towards providing residential facilities for its factory workers. The move aligns with the industrial housing models seen in China and Vietnam.
As per ET’s report, citing government officials, Apple’s contract manufacturers and suppliers like Foxconn, Tata and Salcomp are planning to construct homes for their employees.
This initiative, being carried out under a public-private partnership scheme, marks the largest such private sector endeavour in India.
The report further said that more than 78,000 units are slated for construction under this scheme, with Tamil Nadu set to receive the highest allocation of around 58,000 units.
State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tata Group, and SPR India are among the key developers.
The funding model includes contributions from the central government (10-15%), state governments and entrepreneurs.
The construction and handover to the private sector are anticipated to be completed by the end of the fiscal year, March 31, 2025.
According to officials, the electronics industry is highly location-sensitive and requires proximity to a major airport for efficient transportation of cargo. Recognizing this, the government aims to provide comfortable housing for workers, considering that most of them originate from various parts of the country.
“That is why you need to ensure that they are given good-quality housing somewhere close to the factory as that improves productivity, conditions of work and it also results in better welfare outcomes for the workers,” ministry of electronics and IT (Meity) secretary S Krishnan said, as quoted in the report.
This comes at a time when Apple has been rapidly increasing its production capabilities in India over the past few quarters via its contract manufacturers.
Apple’s India business recorded a revenue of INR 49.3K Cr (almost $6 Bn) in FY23, marking an increase of 48% from INR 33.3K Cr ($4.03 Bn) in FY22.
According to RoC filings, Apple India generates 94.6% of its revenue from sales of products and 5.4% from maintenance and services.
Apple manufactured iPhones worth INR 1 Lakh Cr in India in 2023. The freight on board (FOB) value of the Apple devices stood at INR 1 Lakh Cr while the market value of the production stood between INR 1.5 Lakh Cr to INR 1.7 Lakh Cr.
