The gigantic conglomerate Tata is in final talks to take over Wistron iphone plant in southern India. This deal will provide India its first ever indigenous iPhone maker if it sails thoroughly.
According to two officials who are close to this matter Tata has been in talks with the iPhone factory owner , Taiwan Wistron group for months to finalize the deal and is finally looking to finish it by this march. At first the two companies were discussing a potential tie up however the discussions now come down to Tata taking majority of the joint venture. The two officials further added that Tata is expected to take on the operations of manufacturing with essential support from wistron
Apple Inc. ‘s iPhones are primarily put together by Taiwanese manufacturing behemoths like Wistron and Foxconn Technology Group. Tata’s agreement would help India’s efforts, which have been hampered by political tensions with the US and obstacles related to Covid, to develop domestic rivals to China’s dominance in the electronics industry.
The Indian giant is expected to complete the due diligence by March 31st so that its electronics wing can take over the possession and ownership of Wistron position in a program that gives it government incentives. The next set of incentives is on Apr 1 the start of the Indian financial year.
As per one of people who is close to this affair this acquisition by tata will value Wistron’s only Iphone manufacturing plant in india at a valuation of $600 million if the Taiwanese entity meet the requirements to obtain incentives in the current F/Y
Wistron is one of three Taiwanese iPhone producers doing business in India, along with Foxconn and Pegatron Corporation. It has made an effort to diversify its business beyond the manufacture of servers and other low-margin iPhones, and it has also agreed to sell its iPhone manufacturing operations in China to a rival in 2020.
While Wistron is planning to exit its iPhone-making business in India, its Taiwanese competitors are expanding their iPhone production lines.
If the deal sails thoroughly the Tata will take over all of its 8 iphone production lines as well as the workers working in the plant including a couple of thousand engineers. The wistron plant is located 50 kms east of bangalore. Wistron will continue to remain as a service partner in india
Tata is expanding its business at a tremendous rate, grabbing every opportunity possible. Be it for fmcg or semiconductor manufacturing, they are taking on everything.
