Tata Group is on the verge of acquiring Wistron’s factory in the southern state of Karnataka, marking its entry into iPhone assembly, reports Bloomberg. The deal, worth more than USD 600 million (approximately Rs. 494 crores), is expected to be finalized in August.
Although the deal was initially anticipated to be closed by March 2023, it experienced unforeseen delays. The facility, presently employing over 10,000 workers engaged in assembling the latest iPhone 14 model, would be the first Indian-owned company to undertake iPhone assembly.
Wistron had committed to shipping iPhones valued at a minimum of $1.8 billion (approximately Rs. 180 crores) from the factory until March 2024 to qualify for state-backed financial incentives. With Wistron exiting the iPhone business in India, Tata Group will honour these commitments and take over the facility.
This move aligns with Prime Minister Narendra Modi’s “Make in India” initiative and boosts India’s role as a supply chain hub for electronics.
Tata Group’s acquisition of Wistron’s manufacturing unit highlights its ambition to expand its partnership with Apple. It also underscores the firm’s efforts to diversify into electronics production and e-commerce.
With the addition of an Indian-owned iPhone manufacturing company, Apple further diversifies its product base beyond China and strengthens its manufacturing presence in India.
The acquisition solidifies Tata Group’s position in the Indian electronics industry, supporting the country’s manufacturing capabilities and reinforcing India’s potential as a manufacturing powerhouse.