Apple and its ecosystem, known for its significant contribution to job creation in India with over 1,50,000 direct jobs in the last two and a half years, are now shifting their focus towards enhancing employee welfare by providing residential facilities to factory employees, according to a report by The Economic Times. This initiative aligns with the housing models by the company's suppliers in China and Vietnam, aiming to offer an efficient living environment.
The report, citing people in the know, claims the project involves constructing over 78,000 housing units under a public-private partnership scheme, marking it as the largest private sector initiative of its kind. Tamil Nadu is set to receive the majority, with approximately 58,000 units. The state is also home to the biggest iPhone plant in the country owned by Foxconn.
Contributors and Developers: State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tata Group, and SPR India are among the key developers. The funding model includes contributions from the central government (10-15 per cent), state governments, and entrepreneurs.
Completion Timeline: The construction and handover to the private sector are anticipated to be completed by the end of the fiscal year, March 31, 2025.
Target Demographic: The housing is primarily aimed at migrant women employees, mostly aged between 19-24 years, addressing efficiency, security, and welfare.
Location Sensitivity: The electronics industry's need to be proximate to large airports for easy cargo shipment underscores the importance of comfortable and accessible housing for employees, who often travel long distances from rented accommodations to factories.
House allocation
Foxconn will use nearly 35,000 units for its workforce in Sriperumbudur, Tamil Nadu. Tata Electronics, manufacturing iPhone enclosures at its Hosur facility, plans to build 11,500 units. Salcomp, a manufacturer of power adaptors and other components for Apple, is allocated 3,969 housing units.
The initiative is part of Apple's broader strategy to diversify its manufacturing base amidst geopolitical tensions and market fluctuations. India, being the world's second-largest smartphone market, presents a strategic location for Apple's manufacturing expansion. The initiative not only aims to improve productivity and work conditions but also seeks to address past employee issues and factory shutdowns by providing quality housing near manufacturing facilities.