Tata Electronics is working to internally develop "very sophisticated" and complex high-precision machines used to produce casings of iPhones, the Economic Times reported quoting sources.
Business Today was unable to verify the development independently.
The company has tied up with two Indian manufacturers to develop capabilities for it and plans to also export these complex machines in the future. So far, the Tatas imported these from China, the ET report said.
The machinery can be used in the production lines of contract manufacturers who work for global companies such as Apple.
"The Tata Group is testing these machines in a staged manner at their Hosur facility. Part of the objective is to grow more of its local capability because the company is not just looking to build enclosures, it wants to develop the ecosystem in the country. These machines are just one of the many inputs that go into making a component or an enclosure that the company is looking at to reduce its exclusive dependence on certain parts," the ET report quoted one of its sources.
"If Tata Group is able to do import substitution and they're able to make these machines in India, it will create an industry because so many people want casings. Anybody who wants to make a phone or a tablet in India needs casings and if they're able to adhere to Apple's stringent standards, it would be a high-quality machine in itself," the ET report quoted Ajai Chowdhry, co-founder of HCL.
Computer Numerical Control (CNC) machines are used in abundance in India in a plethora of sectors, however when it comes to using CNC machines for precision components, domestic manufacturers currently lack the capability.
"Development of key capital goods is extremely important for the industry," Pankaj Mohindroo, chairman of industry body India Cellular & Electronics Association (ICEA) told ET. "We are working on developing India as a major assembling and components hub for electronics’ capital goods."
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