Apple has opened discussions with Bharat Forge, part of the Kalyani Group, to potentially bring the company on board as a supplier in India, as reported by ETTelecom. Sources indicate that Bharat Forge could manufacture various components, including mechanical parts, for Apple if talks progress positively. “Apple is engaging with top Indian companies, and discussions with Bharat Forge, based in Pune, Maharashtra, are underway,” a source stated.
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Apple in Talks with Bharat Forge for a Potential Component Manufacturing Partnership in India
In the last two years, Apple has been gradually putting a wider supplier ecosystem in India to increase local value addition in the country in line with the company’s strategy to reduce its manufacturing dependency on China. The company has three iPhone assembly plants in India, with the largest facility operated by Foxconn in Tamil Nadu, and two others overseen by Tata Group in Tamil Nadu and Karnataka.
Apple’s also brought on board suppliers, like Sunwoda, which manufactures battery packs; Foxlink, which designs cables; Aequs, which focuses on enclosures; and Salcomp, one of Apple’s earliest partners in India, now expanding into coils, and power packs, and magnetics, all from China, Japan, and Taiwan. Bharat Forge, a major Indian manufacturer employing nearly 5,000 people, operates across multiple industries including forging, automotive, energy, aerospace, and defense. Baba Kalyani heads the company, which has an international presence with leading-edge engineering capabilities.
Apple’s key supplier Amperex Technology Ltd (ATL) is all set to start production of battery cells at a 180-acre facility in Manesar, Haryana. Meanwhile, firms such as the Motherson Group, are vying to get into Apple’s supply chain via alliances with companies such as Hong Kong’s BIEL Crystal Manufactory. Apple has substantially increased the amount of value it adds locally here, which has now reached 20% for multiple models of the iPhone from 5-8% when production began under the Production Linked Incentive (PLI) scheme in 2020.
In 2024, Apple’s production in India was valued at $17.5 billion, with record exports of $12.8 billion. Experts predict that Apple will continue to strengthen partnerships with Indian suppliers, particularly for iPhone enclosures. Over the next year, more local vendors are expected to join its network, complementing existing operations like Tata Group’s unit in Hosur, Tamil Nadu.
FAQs
What is Bharat Forge’s role in Apple’s India supply chain?
Bharat Forge could potentially manufacture mechanical parts for Apple in India as part of their ongoing talks.
Why is Apple expanding its supply chain in India?
Apple aims to diversify manufacturing beyond China, enhancing local value addition and increasing production in India.