Salcomp, a market leader in smartphone chargers, is planning to more than double its workforce in India to nearly 25,000 over the next three years, Reuters news report said.
The market for mobile chargers is expected to grow from $18.1 billion in 2017 to $25 billion by 2022 at a CAGR of 6.6 percent during the forecast period of 2017-2022.
Salcomp, a supplier of chargers to Apple iPhones, is setting up a housing complex with entertainment and education for about 15,000 people.
Salcomp, which employs about 12,000 people in Chennai with 85 percent of them being women, in 2019 purchased a manufacturing facility from telecom equipment maker Nokia in the southern Indian city of Chennai and started operations in 2020.
“China Plus One strategy is at its peak at this moment. The whole supply chain is kind of looking at an alternative. India is poised to be one of the best alternatives,” said Sasikumar Gendham, managing director, Salcomp Manufacturing India. “It’s time to really diversify and decluster supply chain beyond China.”
Foxconn, another Apple supplier, also plans to quadruple the workforce at its iPhone factory in India over two years, Reuters reported.
Apple is assembling iPhones in India by at least three of suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in Karnataka state.
Apple may make one of four iPhones in India by 2025, and 25 percent of Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside China by 2025 from 5 percent currently, JP Morgan analysts estimated last year.
Salcomp’s website says its capacity of production plants is 520 million pieces. Salcomp’s headquarter is in Salo (Finland). It has production plants in Shenzhen and Guigang (China), in Manaus (Brazil) and in Chennai and Noida (India). Salcomp’s revenue was 601 million during fiscal year 2019.