 "Apple to establish major presence in Bengaluru with new office tower lease")
Apple Inc has made a significant move in Bengaluru's booming office space market by securing an entire tower from Embassy Group, according to a report in The Economic Times (ET). The tech giant, renowned for its iPhones and iPads, has agreed to lease over 400,000 sq ft on Sankey Road, setting a new benchmark in India's Silicon Valley with lease rates exceeding Rs 220 per sq ft per month.
This latest addition underscores Apple's expanding footprint across key Indian cities, including Bengaluru, Mumbai, Hyderabad, and Gurugram. Sources familiar with the deal told ET that a letter of intent has been signed, with lease rates set to escalate by 15 per cent every three years.
The new office space forms part of a commercial development on a prime 2.3-acre site formerly occupied by the Le Meridien hotel, overlooking Bangalore Golf Club and Cubbon Park. Embassy Group, which acquired the property years ago, is constructing a state-of-the-art tower spanning 30,000 sq ft across two basements, a ground floor, and 13 upper levels.
"This is Apple's second-largest facility in Bengaluru. The property will soon go under fit out and will be operational by 2025," a source close to the project told ET.
This move follows Apple's 2021 lease agreement with Prestige Group for a similarly extensive office space in Bengaluru, accommodating teams dedicated to both local and global operations, along with an experiential center. The agreement also includes provisions for renewal over multiple terms, ensuring exclusivity within the building.
Media reports suggest Apple's strategic push to bolster manufacturing operations in India, aiming to locally produce 25 per cent of all iPhones within the next few years. This initiative involves developing a robust local supplier network to reduce dependence on Chinese vendors.
Currently, most iPhones manufactured in India originate from the Sriperumbudur plant near Chennai. To support its expanded manufacturing ambitions, Apple is enhancing its supply chain capabilities, with major production partners like Foxconn Technology Group and Tata Electronics gearing up for increased output. Tata Electronics, in particular, is poised to operate one of India's largest iPhone manufacturing facilities in Hosur, near Bengaluru.