The Tata Group will be investing ₹5,000 crore to set up a phone component manufacturing plant at the industrial complex in Hosur, Tamil Nadu. According to news reports, Tata Sons company, Tata Electronics, has been allotted 500 acres by TIDCO (Tamil Nadu Industrial Development Corporation) and that group firm Titan Co Ltd’s precision engineering division, Titan Engineering and Automation Ltd, will provide the expertise for this project.

With a 27.88% stake in Titan Co Ltd, TIDCO is the single largest shareholder in the watchmaker. The report also said the plant will be used for manufacturing for iPhone maker, Apple, in India. At the moment, the iPhone maker contracts Foxconn, Wistron and Pegatron for manufacturing its phones in India. The Tata plant, on the other hand, will manufacture components instead of overall smartphone assembly and manufacturing.

The Tamil Nadu State government has been continuously making efforts to attract global electronic companies to invest in TN. It recently released a new electronics hardware manufacturing policy, and set an ambitious target to increase electronics industry output to $100 billion by 2025. Due to the rising anti-China sentiment around the world, many leading manufacturers such as Foxconn and Pegatron have plans to set up units in TN.