Soon, Tata Group is planning to give the country its first homegrown iPhone maker.
It seems to be inches closer towards completing a major deal for the takeover of a plant, located in southern India, from Taiwanese manufacturing giant Wistron Corporation.
Tata Group In Talks With Wistron Corp
Reportedly, Tata Group has been in talks with Wistron Corp for months now and is looking forward to completing the deal by the end of March, as per the sources familiar with the matter.
The two firms had discussed potential tie-ups but talks have now settled on Tata Group taking a majority of the joint venture, sources highlighted in the media report.
According to the discussions, Tata Group is likely to oversee the main manufacturing operation, with support from Wistron.
It is noteworthy here that neither Tata Group or Wistron Corp has given any public statements regarding the possibility of such a deal.
A Win Win For Both
As of now, Apple relies on Taiwanese manufacturing giants like Wistron and Foxconn Technology Group for manufacturing and assembly of its iPhones.
Once Tata Group successfully completes the deal, it would significantly boost India’s efforts to create local contenders who can challenge China’s dominance in electronics.
It appears that the Tata Group aims to complete the due diligence process by March 31, 2023.
The move will enable its arm, Tata Electronics, to formally takeover the plant from Wistron.
In case the takeover happens by March, the plant will also qualify for government incentives from April 1, 2023.
Sources said that the acquisition could value Wistron’s only iPhone manufacturing operation in India at more than $600 million if the company meets requirements to receive the expected incentives for the current financial year.
It can not be denied that the plant takeover by Tata could be a massive boost to India.
As we know, Apple is seeking to reduce its dependence on China in the wake of pandemic-related supply chain issues and a slew of restrictions that have dented device production.
Just over 50 kilometers, the 2.2 million square-foot manufacturing plant is located east of Bengaluru.
As part of this deal, Tata Group will take over all of the eight iPhone lines as well as the plant’s 10,000 workers, including engineers, if the deal goes through.