Apple is reportedly in talks with Bharat Forge, a leading manufacturing company under the Kalyani Group, to join its supplier network in India. The collaboration could mark a significant milestone in Apple’s strategy to enhance local manufacturing and reduce its reliance on China.
Key Points
Apple is exploring partnerships with Bharat Forge to manufacture components in India.
Bharat Forge, based in Pune, Maharashtra, may supply mechanical parts for Apple devices.
Apple aims to expand its supplier base in India to increase local value addition.
Current Indian suppliers include Foxconn, Tata Group, Sunwoda, and Salcomp.
Apple’s 2024 production in India reached $17.5 billion, with $12.8 billion in exports.
Bharat Forge’s expertise spans the automotive, defense, aerospace, and energy sectors.
The collaboration aligns with Apple’s Production Linked Incentive (PLI) scheme goals.
Strengthening Apple’s Indian Supply Chain
Apple has been actively expanding its manufacturing ecosystem in India over the past few years. The company currently operates three major iPhone assembly plants:
Foxconn: Apple’s largest facility in Tamil Nadu.
Tata Group: Manages two facilities in Tamil Nadu and Karnataka.
The inclusion of Bharat Forge would add significant value to Apple’s supply chain, given the company’s global expertise in manufacturing components across multiple industries.
Bharat Forge: A Strategic Partner
Bharat Forge is one of India’s most prominent manufacturers, employing nearly 5,000 people and contributing to sectors like automotive, aerospace, energy, and defense. The company’s advanced engineering capabilities and global outreach make it a strong contender for Apple’s supplier network.
“Apple is looking to collaborate with leading Indian firms, and discussions have begun with Bharat Forge,” a source familiar with the matter revealed.
Expanding Local Value Addition
Since Apple started manufacturing in India under the Production Linked Incentive (PLI) scheme in 2020, the company has made significant strides in local value addition. Currently, Apple achieves up to 20% local value addition for iPhone models produced in India.
2024 Manufacturing Output: $17.5 billion.
Exports in 2024: $12.8 billion.
These numbers highlight Apple’s commitment to boosting Indian manufacturing and reducing reliance on overseas suppliers.
New Suppliers and Battery Production
In addition to Bharat Forge, Apple is strengthening its supply chain by onboarding other Indian and global partners. Key developments include:
Amperex Technology Ltd (ATL): Starting battery cell production in Manesar, Haryana.
Motherson Group: Exploring partnerships with Apple through collaborations with BIEL Crystal Manufactory.
Apple’s supplier network also includes prominent players like Sunwoda (battery packs), Foxlink (cables), and Salcomp (coils and power packs).
Apple’s Vision for India
Apple’s decision to engage Bharat Forge reflects its vision for India as a key manufacturing hub. The move aligns with the company’s goals of:
Diversifying its supply chain beyond China.
Increasing local partnerships to boost domestic manufacturing.
Enhancing export capabilities through world-class facilities in India.
Experts believe Apple’s focus on Indian suppliers will continue to grow, particularly in areas like iPhone enclosures and mechanical components, ensuring sustainable growth for the company and its partners.
Conclusion
The potential partnership between Apple and Bharat Forge is a strategic move that aligns with Apple’s goals of localizing production and strengthening its Indian manufacturing ecosystem. With a strong focus on boosting local value addition and creating a robust supply chain, Apple is poised to make India a cornerstone of its global operations.
This collaboration could open new doors for Indian manufacturers while reinforcing Apple’s commitment to fostering innovation and sustainability in its supply network.
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