HIGHLIGHTS
* Tata Sons might soon close a deal to acquire Wistron’s existing plant near Bangalore for around Rs 5,000 crores.
* This will make Tata the first homegrown company to start a production line for Apple products.
* Tata Group could start assembling the iPhone 15 by this year’s end.
Tata might soon be closing in on a deal to acquire the Taiwanese firm Wistron’s existing plant near Bangalore for around Rs 5,000 crores.
This will be a historic move and Tata will become India’s first homegrown production line for Apple products. This news doesn’t come as a surprise considering Tata has been in talks with Taiwan-based Wistron Corp. for months.
If the deal is signed, Tata Group could start assembling the iPhone 15 by this year’s end. We can probably speculate this will happen after the unveiling in September.
Following the acquisition, Tata Group plans to begin assembling the iPhone 15 later this year.
The move could see India become a key manufacturing hub for Apple products, as three Taiwanese firms – Wistron, Pegatron, and Foxconn – currently assemble Apple products in India. While Wistron is leaving the country’s iPhone business, Foxconn and Pegatron have recently expanded their production operations.
Tata Group’s interest in Apple manufacturing comes as the Indian government actively pushes for the country to become a production hub, and Apple seeks to move out of China. Industry experts suggest that the acquisition could prove lucrative for Tata Group, with speculations that the company may move on to acquire Pegatron’s iPhone manufacturing facilities once the Wistron deal is finalized.
However, the acquisition may also result in job losses, as sources indicate that around 2,000 factory workers may need to depart. Additionally, a reduction of 400 mid-level executives and the departure of 4-5 senior executives are also on the cards. Despite this, Tata Group has reportedly begun organizational changes at the facility in preparation for the acquisition.
The move highlights the growing trend of multinational conglomerates expanding their presence in the tech industry, with Tata Group joining the ranks of Apple’s current manufacturing partners. As the tech industry continues to grow and evolve, the acquisition could have significant implications for both Apple and the Indian manufacturing sector.
Tata Sons might assemble iPhone 15 in India
According to a report Business Standard, Tata Sons Chairman N Chandrasekaran met Apple CEO Tim Cook in Mumbai on Monday and discussed the group’s plans to make and sell Apple products in India. The company is also looking into investing Rs 6,300 crores in the Tata Electronics plant in Hosur, Tamil Nadu. The plan is expected to begin production of Apple products by the end of June.
Besides planning on assembling iPhones in India, Tata Group is also planning on setting up 100 exclusive Apple outlets across India through its electronic chain, Tata Croma.
Coming back to Bangalore’s 44-acre facility of Wistron, the plant has eight assembly lines and currently manufactures iPhone 14 and iPhone 12 models. For those unaware, Wistron is one of three Taiwanese iPhone manufacturers in India after Foxconn and Pegatron Corp.
Wistron has diversified its business beyond iPhone manufacturing into areas like servers, agreeing to sell its iPhone production business in China to a competitor in 2020.
If Tata’s deal goes through, Wistron could continue as a service partner for iPhones in India. Tata Group is also expected to apply for production-linked incentives offered by the Indian government to encourage local manufacturing of electronic products.
Faqs on Tata Apple IPhone
1) Tata eyes big for iPhone manufacturing in India?
Ans) At present, three Taiwanese firms – Wistron, Pegatron and Foxconn assemble Apple products in India. While Wistron announced its plans to leave India’s iPhone business as early as 2020, Foxconn and Pegatron have increased their production lines in India
recently.
Currently, Apple products in India are assembled by three Taiwanese companies: Wistron, Pegatron, and Foxconn. While Wistron is exiting the country, Foxconn and Pegatron have recently expanded their production operations there.
As per industry experts, the Tata Group sees Apple manufacturing as a lucrative opportunity, given the Indian governments active efforts to move production in the country and Apple’s push to move out of China. The speculations are that Tata may move on to acquire Pegatron’s iPhone manufacturing facilities once Wistron’s acquisition is finished.
2) Could iPhone 15 be ‘made in India’?
Ans) Currently, Apple products in India are assembled by three Taiwanese companies:
Wistron, Pegatron, and Foxconn. While Wistron is exiting the country, Foxconn and Pegatron have recently expanded their production operations there.
As per industry experts, the Tata Group sees
Apple manufacturing as a lucrative opportunity, given the Indian governments active efforts to move production in the country and Apple’s push to move out of China. The speculations are that Tata may move on to acquire Pegatron’s iPhone manufacturing facilities once Wistron’s acquisition is finished.
Wistron’s 44-acre facility in the outskirts of Bengaluru, with eight assembly lines, currently manufactures the iPhone 14 and iPhone 12 models. After the acquisition, Tata Group could begin the assembly of the iPhone 15 later this year.
Earlier, Bloomberg had reported that Wistron would act as a supporting partner in this joint venture, but now the report says that the Taiwanese company would wind up its operations in the country, valued at $600 million. Although, the company may continue to be a service partner for Apple in India.
In a report from Bloomberg, individuals close to the deal said the due diligence was expected to conclude in March. Upon completion, Tata Electronics Pvt. Ltd. (TEPL), the group’s engineering and manufacturing industrial company, will assume Wistron’s responsibilities in India in an official capacity.
While the group is reportedly ramping up hiring at its plant in Hour, where it manufactures components for iPhones, it may be onto sacking workers at the Wistron plant.
Sources indicate that the takeover may require around 2,000 factory workers to depart. Additionally, a reduction of 400 mid-level executives is also on the cards. Furthermore, about 4-5 executives at the senior level have been discharged or are in the process of departing.
Also Read: Tata Becomes the First iPhone Manufacturer Company in India; Details Inside