Tata Group has reportedly been eyeing the Taiwan-based Wistron’s manufacturing facility in Karnataka that assembles iPhones for months. Bloomberg reports that Tata plans to close the acquisition by March this year.
The Indian conglomerate has been in talks with Wistron to acquire its iPhone manufacturing plant in the east of Karnataka since last year. The two companies have discussed various propositions, but now Tata Group will take over the Taiwanese manufacturing giant’s operations in India, being a majority stakeholder in a joint venture.
Tata to become majority stakeholder in India operations of Wistron
Tata Group will oversee operations at the 44-acre facility in Karnataka, having 8 iPhone manufacturing lines and employs 10,000 workers. Meanwhile, Wistron will act as a supporting partner and continue to be a service partner for Apple in the country.
As per people familiar with the development, Tata Group plans to complete the due diligence by the end of March. Once completed, the group’s engineering and manufacturing industrial company, Tata Electronics Pvt. Ltd. (TEPL) will formally take over Wistron’s responsibilities in India.
One of the sources told Bloomberg that the acquisition would grant Tata Group government incentives. If the Taiwanese contract manufacturer meets the government’s requirements for the incentives, the acquisition could be worth more than Rs 5,000 crores.
Tata plans to open 100 Apple exclusive stores in India
Tata Group has been actively trying to strengthen its business with Apple. Infiniti Retail, the consumer durables and electronics retail unit of the group, is in talks with Apple to become a franchise partner and open as many as 100 exclusive Apple stores in the country.
The group also increased hiring at its plant in Hosur, where it manufactures components for iPhones.
Wistron, Foxconn, and Pegatron are some of the top vendors of Apple that have opened bases in India. These contract manufacturers assemble iPhone SE, iPhone 12, iPhone 13, and iPhone 14 series in India.
The Indian conglomerate has been in talks with Wistron to acquire its iPhone manufacturing plant in the east of Karnataka since last year. The two companies have discussed various propositions, but now Tata Group will take over the Taiwanese manufacturing giant’s operations in India, being a majority stakeholder in a joint venture.
Tata to become majority stakeholder in India operations of Wistron
Tata Group will oversee operations at the 44-acre facility in Karnataka, having 8 iPhone manufacturing lines and employs 10,000 workers. Meanwhile, Wistron will act as a supporting partner and continue to be a service partner for Apple in the country.
As per people familiar with the development, Tata Group plans to complete the due diligence by the end of March. Once completed, the group’s engineering and manufacturing industrial company, Tata Electronics Pvt. Ltd. (TEPL) will formally take over Wistron’s responsibilities in India.
One of the sources told Bloomberg that the acquisition would grant Tata Group government incentives. If the Taiwanese contract manufacturer meets the government’s requirements for the incentives, the acquisition could be worth more than Rs 5,000 crores.
Tata plans to open 100 Apple exclusive stores in India
Tata Group has been actively trying to strengthen its business with Apple. Infiniti Retail, the consumer durables and electronics retail unit of the group, is in talks with Apple to become a franchise partner and open as many as 100 exclusive Apple stores in the country.
The group also increased hiring at its plant in Hosur, where it manufactures components for iPhones.
Wistron, Foxconn, and Pegatron are some of the top vendors of Apple that have opened bases in India. These contract manufacturers assemble iPhone SE, iPhone 12, iPhone 13, and iPhone 14 series in India.
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