According to Bloomberg, Tata Group is getting closer to buying a significant plant in India in a deal that would create the nation’s first domestic iPhone manufacturer.
Bloomberg said that the Indian company
has been in negotiations with Taiwan’s Wistron Corp., the owner of the factory, for months and hopes to close the deal by the end of March. The two companies considered a number of possible alliances, but discussions are currently focused on Tata owning the majority of a joint venture, the sources claimed. According to the sources, Tata would direct the primary manufacturing process with assistance from Wistron.
The majority of Taiwanese manufacturing
behemoths like Wistron and Foxconn Technology Group assemble Apple Inc.’s iPhones. The merger with Tata would help India’s attempts, which have been hampered by political difficulties with the US and obstacles relating to Covid, to develop domestic rivals to China’s dominance in the electronics industry.
According to one of the sources
Tata Group wants to finish the due diligence process by March 31. So that its Tata Electronics division may formally take over Wistron’s position in a government incentive program. The new incentive cycle will commence on April 1. Which also happens to be the start of the Indian fiscal year.
If the Taiwanese company is satisfied. The standards to obtain the anticipated incentives for the current financial year. One of the sources claimed that the acquisition might value Wistron’s sole iPhone production facility in India at more than $600 million.
Wistron is one of three Taiwanese iPhone producers in India
along with Foxconn and Pegatron Corp. In an effort to diversify its company beyond low-margin iPhone manufacturing into industries like servers. It decided to sell its iPhone production facility in China to a rival in 2020.
Just over 30 miles (50 kilometers) east of Bangalore
is where the 2.2 million square foot Wistron facility is situated. If the deal is approved, Tata will acquire all eight of the iPhone lines from Apple as well as the 10,000 employees—including a few thousand engineers—who work at the plant. In India, Wistron would continue to be an iPhone service provider.
Tata has taken further steps to strengthen its connection with Apple.
It has sped up hiring at its factory in Hosur, close to Bangalore, where it manufactures iPhone components. Tata may eventually construct production lines for the iPhone on a few hundred acres surrounding the plant. A hundred Apple stores will also be opened by Tata in India. With the first one set to open in Mumbai this quarter.
With a number of e-commerce ventures
and a brand-new super-app called Tata Neu over the past two years. Chairman Natarajan Chandrasekaran has increased efforts to make the business more technologically oriented. He stated last year that the group also planned to start producing chips.
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