iPhone component hub near Hosur rings in promise of new roads, jobs, etc

Thousands of jobs being created, but most going to outsiders, complain locals

Koothanapalli, a picturesque village about 20 km from the industrial city of Hosur in Tamil Nadu, gives an impression of being lost in the past. Even Google Maps cannot find the new Tata Electronics manufacturing unit there.

That may change soon, as this small village in Tamil Nadu’s Krishnagiri district could play a key role in realising India’s ambition of becoming an iPhone manufacturing hub. 

The 550-acre mega unit in Koothanapalli is 7 km from Tata Electronics’ existing factory at Uddanapalli. For the last two years, the company has been working with Apple to design and manufacture mechanical parts for iPhones here. And the resultant economic activity in the region is evident already. 

Koothanapalli now has a plethora of new buildings and shops. Infrastructure has also got a fillip, with new roads being built. The new plant stands almost at the end of the road in the area developed by the Tata Group. 

“The Koothanapalli unit is likely to be fully operational in the next four months. A lot of the major operations in Uddanapalli are being shifted to the new unit,” said a source, who did not wish to be named. 

It is estimated that the country will make one out of four iPhones globally by 2025. 

The massive infrastructure development in the area can be seen against the backdrop of the Tata Group’s planned electronics manufacturing joint venture with Wistron. It is not clear if the Taiwan electronics company’s venture will also be in the same area. The Tata Group did not respond to questions from Business Standard regarding the project and its future plans.

“We are seeing a huge change in our village in terms of the generation of income. Though only construction workers come to my shop, I am making Rs 1,500 to Rs 2,000 daily,” says 38-year-old Rajamma, who runs a small vegetable shop near the plant. 

Govindappa, another shop owner, feels that by the time the construction works are over, business may pick up even more, as more middle class workers and executives will shift to the area.

Locals want more jobs

What makes the Rs 5,763-crore project even more attractive is the 18,250 jobs that have been promised by the Tata company. There are even You Tube videos highlighting the job opportunities at Koothanapalli. However, locals complain that it is only outsiders from other states who are getting the jobs.  

A company source said that around 12,000 permanent and temporary jobs have already been created in the area, out of which the majority are being given to women. A lot of the hiring is being done from local institutes as well.

But the people in the area are not convinced. “We have approached the authorities, pointing out that not even half the promised employment has been generated so far and none of the locals from Kelamangalam, Raikotta, Shoolagiri and Denkanikottai are being given jobs. North Indians are being given priority,” says K  A Manoharan, former member of Tamil Nadu Legislative Assembly from Hosur and national secretary of the Indian National Trade Union Congress (INTUC).

According to the unions, though the land for the project was given by the locals at Rs 40,000 to 500,000 per acre almost 10 to 15 years ago, after the entry of the Tata Group, land prices have now skyrocketed to around Rs 1 crore an acre. There is now a demand for reservation of jobs for the original land owners of the region.

Industry leaders say that the lack of interest amongst locals is the reason for companies looking for workers from other states. “There is no local employment. Every person in the Hosur area is a migrant. Most of south India works on north Indian labour. There is no local employment boost that we see,” says Arvind M Adhi, treasurer, Hosur Industries Association and president of Elkayem Auto Ancillaries.

 Adhi adds that industry needs the government's support for  building infrastructure such as roads, housing facilities, parks, and water supply systems in the region. “The Tatas will turn around the area surrounding their campus. The government should ensure fast clearances for their vendors, as small associated units find it difficult to get clearances,” Adhi says.  

Though they complain about the lack of jobs, the locals laud the corporate social responsibility activities undertaken by the Tata Group, such as health camps and vaccination drives. “The Tata Group is known for developing small villages like ours. Our demand is more jobs for the original land owners and locals. We have also raised some concerns regarding the environment – regarding the use of a waterbody and the nearby mountain. The authorities and the company should consider this,” says T Kesava Moorthy, chairman, Kelamangalam Panchayat Union.

Local industry leaders believe that the Tata Group will pay attention to the green concerns raised by the unions. “The Tata Group has a futuristic vision. We hear that they are going to be fully self-sufficient in terms of water and will put back more water than they consume. Environmentally responsible manufacturing is what they are targeting,” says Adhi.  

Whether the Tata’s mobile component plant in Koothanapalli finds a place in Google Maps or not, what is certain is that it will give a major economic boost to the region.