Apple in talks to Forge a new Bharat bond: iPhone giant looks to get Kalyani Group co on board for making its components

Apple has started discussions with Bharat Forge on making the Kalyani Group company one of its vendors in India, said people with knowledge of the matter. If this happens, Bharat Forge will be involved in making components, including mechanics, for the US major, they said.That would make it the latest Indian entity to forge a partnership with Apple after the Tata Group, Motherson Group and Aequs.

“Apple is looking to work with some of the biggest Indian companies and talks have commenced with Bharat Forge, located in Pune, Maharashtra,” said one of the persons.

Apple and Bharat Forge didn’t respond to queries.

Over the last two years, the Cupertino-based giant has been expanding the Indian supplier ecosystem with a view to increase value addition locally, as the company shifts more of its manufacturing base outside China.Apple’s suppliers include three iPhone assembly plants in India, the largest of them run by Foxconn in Tamil Nadu. The other two are Tata Group units — in Tamil Nadu and Karnataka.

Bharat Forge is a leading Indian manufacturing company with nearly 5,000 employees. The firm is involved in the forging, automotives, energy, construction and mining, railway, marine, aerospace and defence industries. It has multiple subsidiaries and is helmed by the 76-year-old Baba Kalyani.

Apple’s suppliers from China, Japan, Taiwan and elsewhere have also set up manufacturing units in the country.

Its vendors in the country include Sunwoda (battery packs), Foxlink (cables) and Aequs (enclosures). Salcomp, one of its earliest component suppliers, continues to expand operations beyond its current portfolio of coils, power packs and magnetics.

Among Apple’s largest suppliers is Amperex Technology Ltd (ATL), which will soon start producing battery cells at a 180-acre plant in Manesar, Haryana.

ET had reported August 6, 2024, on the Motherson Group’s plans to enter the Apple supply chain in partnership with Hong Kong-based BIEL Crystal Manufactory. The government is examining the proposal.

An expert said Apple has been focused on iPhone enclosures and it is expected that local suppliers will be onboarded over the next year, in addition to the Tata unit in Hosur, Tamil Nadu.

Apple has achieved local value addition of up to a fifth for various models on the back of expansion in its supplier base in the country. When the company started manufacturing in India at the start of the production linked incentive (PLI) scheme in 2020, the local value addition for the US giant was 5-8%.

The company produced iPhones worth $17.5 billion in 2024 while achieving a record $12.8 billion exports in the year.