
Tata Electronics announced on Thursday that it will restart certain operations at its Tamil Nadu plant, which was affected by a fire last weekend. The plant, crucial for producing components for Apple’s iPhone, experienced a fire in one of its six units during the early hours of Saturday. Fire officials and local authorities have indicated that the fire originated in an area where chemicals were stored.
"We plan to restart work in many areas of the facility today," a company spokesperson said, adding that all team members will continue to receive full pay as the company works toward resuming full operations. The cause of the fire has yet to be determined by both district authorities and the company.
K.M. Sarayu, a district administrative official, confirmed that the Director of Industries for Tamil Nadu has authorised the resumption of operations at the plant. However, the full extent of the damage remains unclear, with fire officer M. Velu stating, "We will know more only after the removal of the debris. The entire shed has collapsed with limited visibility into the damages."
Impact on Apple’s Supply Chain and Festive Season Sales
The fire at Tata Electronics marks the latest disruption for Apple suppliers in India, as the US tech giant continues to diversify its supply chain beyond China. Industry experts have warned that the fire could impact production levels, particularly ahead of the festive season, when demand typically spikes.
Tata Electronics, a key player in Apple's supply chain in India, has been ramping up production to meet growing demand. Any delays or disruptions at the plant could ripple through Apple’s global supply chain, particularly as the company relies on India to reduce its dependency on Chinese manufacturers.
Ongoing Investigations and Recovery Efforts
While the cause of the fire is still under investigation, district fire officials have said that the value of the damages will only become clear once the debris is cleared. The fire led to the collapse of one unit at the plant, with recovery efforts now focused on assessing the extent of the damage and restoring operations as quickly as possible.
Tata Electronics' decision to quickly restart parts of its facility is seen as a positive step in minimising the impact on production, though the full recovery may take some time.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine