In a strategic move to further expand its local supplier base in India, Apple is in advanced discussions with Bharat Forge, a prominent player in the Kalyani Group, to potentially onboard the company as a supplier for iPhone components, including mechanical parts. This development aligns with Apple’s broader goal of diversifying its supply chain and increasing local value addition in India.
Expanding Apple’s Indian Supplier Ecosystem
If finalized, this partnership would mark another significant addition to Apple’s growing network of Indian suppliers, which already includes industry leaders like Tata Group, Motherson, Aequs, Foxlink, and Sunwoda. Bharat Forge, headquartered in Pune, Maharashtra, is renowned for its expertise in forging, automotive, energy, construction, and defense sectors. Its inclusion in Apple’s supply chain would further strengthen India’s position as a key hub for iPhone manufacturing.
Boosting Local Value Addition
Apple’s efforts to deepen its roots in India have been gaining momentum since the introduction of the Production Linked Incentive (PLI) scheme in 2020. The company has significantly increased its local value addition, which has risen from 5-8% in 2020 to an impressive 20% for various iPhone models in 2024. This growth underscores Apple’s commitment to reducing its reliance on China and fostering a robust manufacturing ecosystem in India.
In 2024 alone, Apple produced USD 17.5 billion worth of iPhones in India, with USD 12.8 billion worth of exports, highlighting the country’s growing importance in the tech giant’s global supply chain.
Strengthening India’s Manufacturing Landscape
Apple’s partnership with Bharat Forge is part of its broader strategy to expand local manufacturing capabilities and create a more resilient supply chain. The company has already established its largest iPhone assembly plant in Tamil Nadu, operated by Foxconn, and has been actively collaborating with Indian suppliers to enhance production efficiency and scale.
This move not only benefits Apple but also contributes to India’s vision of becoming a global manufacturing powerhouse. By leveraging the expertise of Indian companies like Bharat Forge, Apple is paving the way for greater innovation, job creation, and economic growth in the country.
A Win-Win Collaboration
The potential partnership between Apple and Bharat Forge reflects a shared commitment to excellence and sustainability. As Apple continues to shift its production out of China, collaborations with Indian suppliers will play a crucial role in achieving its long-term goals.
This development is a testament to India’s growing capabilities in high-tech manufacturing and its ability to attract global giants like Apple. As the discussions progress, the tech industry eagerly awaits the impact of this collaboration on Apple’s supply chain and India’s manufacturing landscape.