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Smartphone maker Apple to now make 78000 homes for factory workers in India

Collaborating with government agencies, Apple's contract manufacturers and suppliers are undertaking the construction of over 78,000 housing units, with Tamil Nadu being allocated the highest number. The initiative aims to enhance efficiency, security, and welfare, especially for women employees, who form a significant portion of the workforce

Smartphone maker Apple to now make homes for its factory workers in India
First Published Apr 8, 2024, 11:41 AM IST

Apple has created over 150,000 direct jobs over the past two and a half years. Now, the smartphone maker is venturing into providing residential accommodations for factory workers. According to a report by The Economic Times (ET), this move mirrors the industrial housing models observed in China and Vietnam.

Government officials have revealed that Apple's contract manufacturers and suppliers, including Foxconn, Tata, and Salcomp, are actively involved in developing housing for their employees. These efforts are being carried out through a public-private partnership, marking a significant private-sector initiative. The objective is to construct over 78,000 housing units, with Tamil Nadu slated to receive the highest allocation of 58,000 units.

The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is spearheading the construction of the majority of housing units, with additional contributions from the Tata Group and SPR India. 

Under this initiative, the Centre is expected to contribute 10-15% of the funding, while the remaining portion will be sourced from state governments and entrepreneurs. Officials anticipate the completion of construction and handover to the private sector within the current financial year, ending on March 31, 2025.

This extensive employee housing endeavour, particularly tailored for women employees, is unprecedented in India. Currently, most workers reside in rented accommodations and endure lengthy commutes to factories, posing security concerns, especially for women employees.

According to officials, the electronics industry benefits from proximity to large airports for efficient cargo transportation. Providing comfortable housing close to factories is essential for enhancing productivity, improving working conditions, and ensuring the welfare of workers.

Foxconn, Apple's largest iPhone supplier in India based in Sriperumbudur, Tamil Nadu, is set to utilize nearly 35,000 of these housing units. Tata Electronics and Salcomp are also actively involved in constructing housing units for their employees at their respective facilities.

Apple's intensified focus on India, the world's second-largest smartphone market, amidst geopolitical tensions and challenges in key markets like the US and China, underscores the significance of this initiative. 

Since initiating iPhone manufacturing in India in 2017, Apple has expanded local production under the production-linked incentive (PLI) scheme, collaborating with suppliers to assemble the latest iPhone models and increase local production of components.

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