Following the Hosur Fire, Tamil Nadu Gives Tata Electronics a Show-Cause Notice

Nitin Konde, Varun Bhardwaj

Oct 17, 2024 — 2 min read

Tamil Nadu Gives Show-Cause Notice to Tata Electronics

After a significant fire occurred at one of Tata Electronics' manufacturing facilities last month, the Tamil Nadu government served the company with a show-cause notice. According to a report by a well-known media outlet, the notification was delivered by the Directorate of Industrial Health and Safety, asking for an explanation about the occurrence.

As stated in the report, an official pointed out that the company is required to answer within a week unless they request an extension. The warning was issued to the plant manager and the "occupier," as is common in such instances.

According to the Factories Act, the "occupier" is responsible for ensuring the health, safety, and welfare of the workers and has the final say over how a factory operates. In corporations, the occupier is usually one of the directors.

The article further stated that the show-cause notice required that Tata Electronics submit its findings and listed the malfunctioning thermostat control at the anodising factory as the likely cause of the incident. Companies may provide alternate explanations based on independent investigations, or they may accept the government's logic in certain situations.

An Incident Involving Fire at the Tata Electronics Facility in Hosur

The fire at Tata Electronics' Hosur facility had a "most probable cause," according to the state Directorate of Industrial Health and Safety. The incident, which happened in late September, entailed a fire at one of the company's production facilities that provides Apple with accessories.

There were reportedly more than 1,500 workers inside the plant when the fire broke out. The business confirmed the fire occurrence in a statement and guaranteed that all emergency procedures were followed to protect the safety of every employee. Tata Electronics said that they were looking into what caused the incident and that they will take the necessary precautions to protect their stakeholders and staff.

Media reports state that the Uddanapalli mobile accessory painting unit is where the fire originated. After being transported to a private hospital, three workers who had respiratory problems were said to be in stable condition.

Assembly Activities for the iPhone are Disrupted

Tata Electronics was about to start production at its iPhone assembly plant in the Koothanapalli neighbourhood of Hosur when the event happened. With the acquisition of the unit of Taiwanese electronics maker Wistron, which has been in the works for the past two years, this will be the company's second assembly plant for the iPhone.

The iPhone assembly plant is projected to cost roughly INR 6,000 crore, which is the same amount that Tata Electronics invested in the component manufacturing that supplies Apple. It is anticipated that the combined facilities will generate over 50,000 jobs, most of which will go to women. With an estimated 35,000–40,000 employees, the iPhone assembly plant alone is expected to rank second in size among Apple's Indian manufacturing sites, after Foxconn's Tamil Nadu plant.