Tata Electronics faces pollution scrutiny over Hosur facility

MUMBAI: The factory that helps build the future of the iPhone is now facing questions about the ground beneath it. Tata Electronics, a key part of Apple’s rapidly expanding India manufacturing ecosystem, has come under regulatory scrutiny after Tamil Nadu’s pollution watchdog alleged that wastewater from its Hosur facility contaminated groundwater in neighbouring agricultural areas.

The development follows months of complaints from local farmers, who claimed that wastewater discharge from the plant was affecting farmland and open wells around the site. The allegations prompted the Tamil Nadu Pollution Control Board (TNPCB) to conduct five inspections between December 2025 and May 2026.

According to a warning notice dated May 25 and reviewed by Reuters, inspectors found that wastewater had been discharged into a rainwater harvesting pond inside the factory premises. The board alleged that overflow from the pond subsequently seeped into nearby areas, contaminating groundwater in open wells used by surrounding farms.

The Hosur facility manufactures iPhone back panels and other components, making it an important link in Apple’s growing India supply chain.

The pollution board also claimed that Tata Electronics had failed to implement corrective measures outlined in an earlier communication issued on December 23, 2025. Authorities have now asked the company to explain why power supply to the facility should not be disconnected and why closure proceedings should not be initiated over the alleged violations.

Tata Electronics has strongly defended its position. Responding to Reuters, the company said an independent assessment conducted by an accredited laboratory found it to be fully compliant with regulatory requirements. It added that it remains committed to environmental protection, responsible operations and the welfare of local communities.

The company confirmed that it has submitted a detailed response to the pollution authorities, although it did not disclose specifics of its submission.

The issue arrives at a critical time for Apple’s manufacturing ambitions in India. The country is becoming an increasingly important production hub for the tech giant, with research firm Counterpoint projecting that India will account for 26 per cent of global iPhone production in 2026, up sharply from just 6 per cent four years ago.

The scrutiny also follows a series of operational challenges within Apple’s India supply chain in recent years. A fire at Tata’s Hosur plant in September 2024 briefly disrupted component production, while a separate fire at a Pegatron facility in 2023 affected iPhone assembly operations.

More broadly, environmental compliance remains a significant focus for regulators. India’s environment ministry recently informed Parliament that 4.4 per cent of more than 544,000 industries inspected over the past five years were found to be non-compliant with environmental norms, while roughly 3,600 units were shut down by pollution authorities.

For now, the spotlight is firmly on Hosur, where a facility helping power India’s manufacturing rise must also answer questions about its environmental footprint.