Apple’s contract manufacturers and suppliers, such as Foxconn, Tata, and Salcomp, are leading projects to offer housing for their staff. The proposal includes the construction of around 78,000 units, with Tamil Nadu set to receive the majority, approximately 58,000 units. The building of most housing units is led by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
Apple’s ecosystem, which has already produced 150,000 direct employment in India over the last two and a half years, is now moving its focus to providing living amenities for factory workers. The move is consistent with the industrial housing concepts seen in China and Vietnam.
According to an ET story quoting government sources, Apple’s contract manufacturers and suppliers, including Foxconn, Tata, and Salcomp, are planning to build residences for their staff.
This program, carried out under a public-private partnership scheme, is the greatest private sector endeavor in India.
According to the study, more than 78,000 units are earmarked for development under this scheme, with Tamil Nadu receiving the largest allocation of over 58,000 units.
The primary developers include the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), the Tata Group, and SPR India.
The funding strategy involves donations from the central government (10-15%), state governments, and entrepreneurs.
The construction and turnover to the private sector are expected to be completed by the end of the fiscal year on March 31, 2025.
Officials claim that for effective cargo transportation, the electronics industry is extremely location-sensitive and needs to be close to a large airport. Recognizing this, the government tries to offer decent housing for workers, given that the majority of them come from different parts of the country.
“That is why you need to ensure that they are given good-quality housing somewhere near the factory because it improves productivity, working conditions, and welfare outcomes for the workers,” ministry of electronics and IT (Meity) secretary S Krishnan said, according to the report.
This comes at a time when Apple’s production capabilities in India have been quickly expanding over the last few quarters through contract manufacturers.
Apple’s India business generated INR 49.3K Cr (nearly $6 Bn) in FY23, up 48% from INR 33.3K Cr ($4.03 Bn) in FY22.
According to RoC records, Apple India’s income is 94.6% from product sales and 5.4% from maintenance and services.
Apple produced iPhones worth INR 1 lakh crore in India in 2023. The freight on board (FOB) value of Apple products was INR 1 lakh crore, whereas the market value of production was between INR 1.5 lakh crore and INR 1.7 lakh crore.
