Layam Group, a key supplier of skilled labour to Apple’s manufacturing partners such as Foxconn, Tata Electronics and Pegatron, is planning to launch an initial public offering (IPO) during the next financial year to fund its expansion plans. The Chennai-based company is targeting an over 40 per cent rise in its revenue in the next two years, on the back of a push in electronics sector investments in Tamil Nadu, with players such as Apple on an expansion drive. Apple is reportedly planning to increase India’s share in its global iPhone production to 25 per cent in the next three to four years.
“We expect our revenue to grow from Rs 350 crore to over Rs 500 crore in the next two years. Our plan is to go public by 2025-26,” said G Ramesh, Chairman, Layam Group. The company has a presence across multiple sectors including HR solutions, recruitment, staffing, contract manufacturing, training and business consulting, catering to the needs of diverse industries across India.
“The electronics sector is expected to create millions of jobs in India in the coming years, and many global companies are looking at investment opportunities in India. Also, the sector is creating a lot of jobs for women,” Ramesh said. So far, the company has hired over 20,000 blue-collar women employees across the country. He noted that Tamil Nadu is seeing a lot of such investments in the electronics sector and Layam itself is planning to foray into the manufacturing sector.
In the electronics sector, the state is India’s largest exporter with exports reaching $9.56 billion in FY24, up 78 per cent from $5.37 billion in FY23 and way ahead of Karnataka and Uttar Pradesh. According to industry experts, one of the key reasons for the surge in exports is the China-Plus-One strategy of multinationals like Apple, following which its contractors like Foxconn and Pegatron, and suppliers like Salcomp, contributed to Tamil Nadu’s rise as the country’s electronics hub last year. Coined in 2013, China-Plus-One is a comprehensive business strategy where companies avoid investing in China alone and diversify their business to alternative destinations.
“We expect to see a big boost in the electronics sector in India due to the China-Plus-One policy,” he added. The labour supplier’s listing plans come at a time when Apple has committed to achieving an export target of $9 billion by fiscal 2025 and has already completed 45 per cent of the target in the first four months.
Apple Inc. is planning to set up its fourth iPhone assembly plant in India soon, to be built by its main contract manufacturer Tata Electronics, and is likely to start production in November. The unit in Hosur in Tamil Nadu will be Tata Electronics’ second iPhone assembly plant after its acquisition of the Wistron unit.
First published: September 4, 2024 | 22:29 IS
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