Published on October 30, 2023, 3:20 pm
Image source: Fox News
Tata Group, an Indian conglomerate, has acquired Wistron's iPhone manufacturing facility in India and will begin producing iPhones for both domestic and global markets in the next 2.5 years. The $125 million deal comes after Wistron faced challenges in the region, including a riot at its plant in 2020. Tata Group's entry into iPhone production aligns with India's goals of attracting more technology manufacturing investments and reducing reliance on imports. This partnership strengthens Apple's presence in the Indian market and offers potential cost savings and supply chain stability.
Indian conglomerate Tata Group is set to begin manufacturing iPhones in India after acquiring Wistron’s iPhone manufacturing facility in the state of Karnataka. The Deputy IT Minister of India confirmed the news, stating that Tata will produce iPhones for both the domestic and global markets within the next 2.5 years.
The deal, valued at $125 million, will see Tata Group take full ownership of Wistron InfoComm Manufacturing (India) Private Limited (WMMI) following board approval. Wistron has been assembling various iPhone models at the facility since 2017.
This development comes after Wistron announced its plans to withdraw from India earlier this year. The company has faced challenges in the region, with poor management practices and worker exploitation leading to a riot at its Narasapura plant in 2020. As a result, Apple placed Wistron on probation for violating its Supplier Code of Conduct.
Tata Group had already expressed interest in partnering with Wistron for iPhone production and emerged as a potential suitor when Wistron announced its departure from India. With operations in over 100 countries across various industries, Tata Group is a well-established multinational corporation.
The move to manufacture iPhones in India aligns with the country’s efforts to attract more technology manufacturing investments and reduce reliance on imports. It also presents an opportunity for Tata Group to expand its presence in the consumer technology market.
By producing iPhones locally, Apple can cater specifically to the Indian market’s needs while potentially benefiting from cost savings associated with local production. It could also help Apple avoid any future supply chain disruptions or geopolitical issues that may arise.
Overall, this partnership between Tata Group and Wistron marks a significant development in India’s growing prominence as a hub for electronic manufacturing and strengthens Apple’s position in the country’s market.
Original article posted by Fox News
