Nokia’s Chennai plant sold to Salcomp; likely to reopen in 2020

Salcomb, the world’s largest maker of mobile phone chargers, is expected to produce components — mostly chargers — for Apple in India. The Sriperumbudur factory in Tamil Nadu was lying shut for nearly seven years and the machines at the plant must have rusted by now.

The plant is likely to resume operations by March 2020, union minister of telecommunications and information technology Ravi Shankar Prasad announced on Monday.

Salcomp, a key supplier for Apple, will be exporting 70 per cent of the products made in India, mostly to China, the minister added.

“Salcomp has reached an agreement to take over that facility... It is expected to start operations by March 2020. Salcomp will be investing ?2,000 crore over the next five years. It will bring direct employment to 10,000 people and indirect employment to 50,000 people,” the minister said.

Nokia decided to keep the plant shut in 2014 following a tax dispute with the Income Tax department.

Prasad further said that Apple had started production of its iPhone XR in India for the domestic market as well as for exports. “India will have the most favourable regime to become a big centre for mobile manufacturing,” he said. 

Apple has contract manufacturing facilities in Bengaluru and Chennai – manufactured by Foxccon and Wistron – and is investing around $1 billion to expand in India as it is gradually shifting its plans out of China.

Many of its components suppliers are now shifting their bases in India such as Flex, Sunwoda Electronic and Shenzhen Yuto Packaging Technology, to support the manufacturing from India, Salcomp being the latest one.

Exports of electronic gadgets from India are expected to double to $3.2 billion in the current financial year (2019-20).