News

Tata Group close to taking over iPhone maker’s plant near Bengaluru


Tata Group is about to take over a major factory in southern India in a deal that will give the country its first iPhone maker in the country.

The aviation-to-software transformation group has been negotiating with the plant’s owner, Taiwan’s Wistron Group, for months and is looking to finalize the purchase by the end of March, according to two people familiar with the matter. this process. The two companies have discussed a variety of potential partnerships but negotiations are currently focused on Tata taking the majority of the joint venture, the source said. Tata is set to oversee major production, with assistance from Wistron, the people said, requesting anonymity because the plans are not made public.

by Apple Inc. Iphone mainly assembled by Taiwanese manufacturing giants such as Wistron and Foxconn Technology Group. Tata’s deal will boost India’s efforts to create local rivals to challenge China’s dominance in the electronics sector, which is already threatened by political tensions with the US and trade barriers. barriers related to Covid-19.

The Indian corporation aims to complete the due diligence process by March 31 so that its Tata Electronics subsidiary can officially take over Wistron’s position in a program that gives them government incentives, a source said. The next incentive cycle will start from April 1, marking the start of the Indian fiscal year.

The acquisition could value Wistron’s sole iPhone production in India at more than $600 million if the Taiwanese company meets the requirements to receive the incentives expected for the current financial year. , a source said.

A representative for Tata declined to comment. Wistron and Apple did not respond to requests for comment.

Wistron is one of three Taiwanese iPhone manufacturers in India, along with Foxconn and Pegatron Corp. Wistron has sought to diversify its business beyond low-margin iPhone production into areas like servers, agreeing to sell its iPhone production in China to a competitor in India. Degree. 2020.

However, even as Wistron plans to stop making iPhones in India, other Taiwanese companies are expanding their iPhone production lines. Apple, the world’s most profitable smartphone maker, is looking to reduce its reliance on China, where a pandemic-related supply chain and draconian restrictions have ravaged the production of devices. bag.

Wistron’s 2.2 million square foot factory is located more than 30 miles (50 km) east of Bangalore. If the acquisition is successful, Tata will take over all eight of its iPhone lines, as well as 10,000 factory workers, including several thousand engineers. Wistron will continue to be the service partner for iPhone in India.

Tata has taken other steps to strengthen its business with Apple. It has accelerated hiring in its factory in Hosur, near Bangalore, where it makes iPhone components. That factory is located on hundreds of acres of land, where Tata could add iPhone production lines in the coming years. Tata has also announced that it will be opening 100 Apple stores in the country of 1.4 billion people, the first of which will open in Mumbai this quarter.

150 years old tata corporation produces everything from branded salt and Tetley Tea to steel and Jaguar cars, and operates an airline and Starbucks coffee shop in the country. Its Tata Consulting Services Ltd. is Asia’s largest IT outsourcing company and one of India’s highest market capitalization companies.

Over the past few years, Chairman Natarajan Chandrasekaran has stepped up efforts to make the group more technology-focused with a series of e-commerce initiatives and a new super app called Tata Neu. Chandrasekaran said last year it was also preparing to enter chip production.

catch them all Business newsletter, Market News, Hot news Events and Latest news Update on Live Mint. Download Mint News Application to get Daily Market Updates.

Than
Less than

news5s

News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button