Tata Group acquires Wistron factory in Karnataka for manufacturing iPhones
The Tata Group, India’s largest conglomerate, is set to begin manufacturing the first homegrown iPhone in India. To facilitate the production of iPhones, the group has acquired a factory in Karnataka from Wistron, a Taiwanese electronics manufacturer. According to the sources, the assembly of iPhones will begin in the coming months.
India has been a major market for Apple, but until now the company had been relying on contract manufacturers in China. With the growing tensions between India and China, the tech giant decided to switch its focus to India. The acquisition of the Wistron factory in Karnataka is the first step in that direction. The Wistron factory in Narasapura, Karnataka is spread across an area of 107 acres and has the capacity to manufacture 1 million iPhones each month. The factory is expected to bring around 25,000 jobs in the coming years. The company has also invested in state-of-the-art technology to ensure the smooth production of iPhones.
Given that Tata Group is almost ready to purchase a sizable plant in India’s southern region, it appears that the company will soon begin producing iPhones there. The two companies had been in discussions for months about taking over Wistron’s iPhone manufacturing facility in Karnataka. According to the persons acquainted with the situation who spoke with Bloomberg, it has now come to light that Tata Group will close the deal by the end of March.
The switch to India is expected to bring a lot of advantages for Apple. The Indian government has announced various incentives for companies that switch to India for manufacture of electronic gadgets. The government has also given tax exemptions to companies that set up their manufacturing units in India. This will help Apple to reduce its cost and make the products more affordable for the customers. The move to India will also help Apple to reduce its dependence on China. The company has been facing a lot of issues in China due to the trade war between the two countries.
According to the stated source, after lengthy negotiations between the two businesses, Tata has decided to take control of the majority of the joint venture. According to the sources with knowledge of the situation, the Tata Group would allegedly manage the primary operation with the aid of Wistron. The businesses are not formally confirming whether Tata is acquiring one of the important iPhone manufacturers because they haven’t made this information public.
N Ganapathy Subramaniam, operations head at Tata Consultancy Services told Bloomberg in an interview: “I am not personally involved in it, but it should be incredibly beneficial for India because this is going to create an opportunity for India to produce electronics and microelectronics.
There is a likelihood that the iPhone will be sold in India at a far lower cost if Tata builds it there. Some iPhones are currently assembled in India, but not all of them. Therefore, this would make a significant difference and provide Indians with a better deal. Speaking of which, during the Flipkart Big Saving Days sale, customers who have been waiting to get the newest iPhones at a lesser price may be able to do so.