Wistron's iPhone plant in Bengaluru, India's first Apple production line to be owned by Tata Group
Tata Group's Acquisition of Wistron's iPhone Plant Signals the Country's Growing Importance as a Manufacturing Hub
10 April 2023
|
Kunal Tyagi
India will now have its first production line for Apple goods thanks to Tata Group's acquisition of Wistron's iPhone factory in Bengaluru.
Together with over 2,000 employees, 400 mid-level employees, and four to five senior-level leaders will also be let go.
The purchase emphasizes India's expanding significance as a manufacturing hub for multinational tech companies like Apple.
The Wistron iPhone facility in Bengaluru will be acquired by Tata Group, a significant Indian conglomerate, and is anticipated to close by the end of April. This acquisition is noteworthy since it will establish India's first Apple product manufacturing facility. Some 2,000 employees, 400 mid-level employees, and four to five senior-level executives are anticipated to be laid off as a result of organizational reforms that the Tata Group has already begun to implement at the location.
As this was Wistron's only facility in India that made Apple products, once the takeover is finalized, Wistron will no longer have any presence in the Indian market. The estimated size of the Indian market for Apple products is $600 million, thus the acquisition is being hailed as a huge step forward, especially considering Apple's desire to move production operations outside of China. Due to the rivalry between China and the United States, Apple revealed intentions to move around 25% of its worldwide production to India last year.
Apply to Xartup Fellowship Program
Get ₹1.5 Crore Technical Funding
Three Taiwanese firms, Wistron, Pegatron, and Foxconn, manufacture Apple products in India. Foxconn and Pegatron have expanded their production lines in India while Wistron is leaving. The Indian government is actively recruiting Apple to move production to India, thus the Tata Group sees manufacturing for Apple as a promising possibility. Tata may purchase Pegatron's iPhone manufacturing operations when the Wistron transaction is finished.
Although Wistron's Indian factory already produces the iPhone 12 and iPhone 14 over eight production lines, the Indian conglomerate is anticipated to start producing the iPhone 15. Tata has also taken further measures to expand its relationship with Apple, including adding more staff at its Tamil Nadu facility that manufactures iPhone components.
As a result, India will now have its first production line for Apple goods thanks to Tata Group's acquisition of Wistron's iPhone facility in Bengaluru. Tata Group has a wonderful chance since Wistron is leaving India and the Indian government is actively recruiting Apple to move to manufacture there. The company's market penetration into India might increase further as a result of the acquisition of Pegatron's iPhone manufacturing facilities. Ultimately, this deal shows how India is becoming a more vital manufacturing location for global IT companies like Apple.
Startup news delivered to your mail
Recommended for you
Budget 2023: Did it Live up to the Startup Ecosystem's Hopes?
Byju’s, Once Valued at $22 Billion, Faces Insolvency Proceedings
Budget 2024: FM Nirmala Sitharaman Abolishes Angel Tax to Boost Startups