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Tata Electronics charges on to hire more
Tata Electronics is likely to match Foxconn's headcount in India in the next six months, ramping up to 75,000 people at its Hosur plant from 60,000 now as it expands operations, primarily driven by traction in electronics manufacturing services (EMS) owing to Apple's blistering pace, said people aware of the development.
Exports of Apple's iPhones hit a record $10 billion in the first six months of this fiscal year, up 75% from $5.71 billion in the year-ago period, as reported by ET on October 8.
Apple and Tata Electronics didn't respond to queries.
“Tata Electronics is ramping up rapidly to keep up with demand from Apple,” said one of the people cited. “In the next six months or so, their headcount is likely to be at the same level as that of Foxconn, signalling the feverish pace of growth in recent times.”
“It's a significant achievement for the industry at large for an Indian player to reach this scale in a short span of time and to be part of a global value chain (GVC) like Apple's,” the person cited said.
ETtech Tata Electronics has emerged as a key contributor to the parent's financials, highlighted by the company's growing significance in India's electronics and semiconductor manufacturing sector. It posted revenue of Rs 66,601 crore in FY25 as per the Tata Sons annual report, a sharp rise from Rs 3,752 crore the year before, according to filings reviewed by ET.
Getting the right people is proving to be tough though, said the people cited.
"Tata Electronics is struggling with finding enough skilled manpower,” one of them said. “As the scale gets bigger and bigger, they are recognising that they have to be more thoughtful about how they approach factors like manpower, water, power and other things. There's a need especially to solve for the talent piece because customer traction and other factors are rock solid.”
Industry-wide challenge
This is an industry-wide challenge. Experts say the skill gap is expected to rise to 16.9% with the incremental shortfall year-on-year pegged at more than 2 million employees.
“The output from our skilling institutes is unable to match the speed at which these companies are ramping up. The supply has been lagging the demand from the industry,” said Aditya Narayan Mishra, managing director and chief executive officer of CIEL HR, a staffing agency. “There is also no readily available talent as the industry is still nascent."
Attrition also tends to be high in these sectors as recruits come to grips working in these new structures.
“In other sectors, aspects like salaries and employee benefits are more standardised,” he said. “But these are growth pangs that the industry will have to go through to reach a stage of maturity.”
Another recruitment expert said that a lack of the required skills is evident.
“The low investment by companies in training shop floor technicians only increases the skill gap,” the person said. “There is also migration of electrical engineering employees to IT, which poses a challenge as data and consulting jobs are coveted amongst job seekers.”
In November last year, recruitment and human resources services company TeamLease Services said in a report that India's burgeoning electronics manufacturing industry faces a pressing deficit of trained professionals.
It said that by 2027-28, the electronics sector will employ 12 million people in direct and indirect jobs. However, the sector is projected to face a substantial workforce shortfall of eight million and a skill gap affecting an additional 10 million people. The industry has identified a critical talent gap in specialised fields such as communication and broadcast electronics, consumer electronics, industrial electronics, and aerospace and defence electronics.
Foxconn hiring spree
The Tata Electronics expansion reflects Apple's burgeoning footprint in India given that the contract maker is among the company's major suppliers in the country. Foxconn, Apple's biggest contract manufacturer globally, has also been stepping up operations in India.
ET reported November 15 that Foxconn is increasing headcount at its facility in Devanahalli, Karnataka, which is poised to be one of the company's largest in the world.
“Foxconn is looking to ramp up its headcount to around 30,000 by next year,” a source told ET at the time. “Currently, the headcount is shy of around 25,000. The goal is to slowly scale their headcount as more of their facility is built and gets operational. Foxconn employs roughly 40,000 people at its Chennai plant.” The company also has sizable operations in Hyderabad.
Source: EconomicTimes
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