supply chain expansion

In a significant move to expand its supplier ecosystem in India, Apple is reportedly in discussions with Bharat Forge, part of the renowned Kalyani Group, to onboard them as a vendor. This partnership, if finalized, could see Bharat Forge manufacturing mechanical components for the tech giant, adding to Apple’s growing list of Indian partners, including Tata Group, Motherson Group, and Aequs. Bharat Forge: A Leading Manufacturing Powerhouse Bharat Forge, with its 5,000-strong workforce, is a key player in India’s manufacturing sector. Known for its expertise in forging, automotive, energy, construction, aerospace, and defense industries, the company operates under the leadership of its visionary chairman, Baba Kalyani. Apple’s collaboration with Bharat Forge would further strengthen its local supply chain while signaling its commitment to reducing dependency on China. The move aligns with Apple’s global strategy to diversify manufacturing and boost local production capacities. Expanding Apple’s Indian Supplier Ecosystem Over the past two years, Apple has been systematically growing its supplier ecosystem in India. This strategic expansion aims to increase value addition locally and reduce manufacturing reliance on a single geography. Currently, Apple’s vendors in India include Sunwoda (battery packs), Foxlink (cables), and Aequs (enclosures). India is already home to three major iPhone assembly plants, the largest of which is operated by Foxconn in Tamil Nadu. Additionally, Tata Group manages two units in Tamil Nadu and Karnataka, producing components for Apple’s global markets. Motherson Group and ATL: New Developments in the Supply Chain Other potential entrants to Apple’s supply chain include Motherson Group, which is reportedly in talks with Hong Kong-based BIEL Crystal Manufactory to supply components. Meanwhile, ATL (Amperex Technology Ltd.), one of Apple’s largest battery suppliers, is set to begin battery cell production at its 180-acre plant in Manesar, Haryana. India’s Rising Role in Apple’s Global Manufacturing Apple’s local value addition in India has grown significantly since the launch of the Production-Linked Incentive (PLI) scheme in 2020. Initially at just 5-8%, local value addition has surged as Apple scales up its manufacturing footprint. In 2024 alone, Apple produced $17.5 billion worth of iPhones in India, with exports reaching a record $12.8 billion. This growing ecosystem is a testament to Apple’s confidence in India’s manufacturing capabilities and the government’s support through initiatives like PLI. The inclusion of Bharat Forge would mark another milestone in Apple’s India journey, highlighting the country’s emergence as a crucial player in global supply chains. As discussions continue, the potential partnership between Apple and Bharat Forge underscores a broader trend: India is no longer just a market for global tech giants—it’s becoming an integral part of their production and innovation strategies.

Apple Eyes Bharat Forge for Indian Supply Chain Expansion