Conglomerate Tata Group is set to build India”s biggest Apple iPhone manufacturing plant in Husur, Tamil Nadu. The plant will be operational within 12 to 18 months and is likely to employ 50,000 workers in two years.

The plant is characterized as midsize compared to other facilities all over the world. However, it will be bigger than Wiston”s plant in Karnataka, which employs 10,000 people, and smaller than Foxconn”s biggest plant in China, which harnesses hundreds of thousands of workers.

The company entered iPhone production by taking over the Wistron plant situated in Karnataka a month ago. The new plant would help Apple strengthen the local supply chain and enhance cooperation with Tata, which is already operating an iPhone plant in Karnataka. India”s contribution to the total iPhone market is 7%, with Tata”s plant in Karnataka and Foxconn”s facilities in Tamil Nadu and Andhra Pradesh.

The rest of the production belongs to China. However, Apple is planning to shift its operations from China, with their assembly and component manufacturing partners, to India, Thailand, Malaysia, and elsewhere.

India”s PLI scheme has given adequate impetus to companies like Foxconn, which is building a new 300-acre facility in Bengaluru apart from the ongoing plants. The Telangana government has reportedly earmarked 200 acres of land for Foxconn to set up the manufacturing unit at Kongara Kalan, which is about 35 km from Hyderabad.

Tata”s iPhone contract manufacturing is considered a turnabout, given that Tata is known for its salt to software businesses. Moreover, Tata and Apple may apply for the central government”s incentives for the factory, as they will start operations when the existing scheme ends.