Economy
First 'Indian' Production Line For Apple Products - Tata Group All Set To Take Over Wistron's Bengaluru Plant
iPhones (Photo by Sunil Ghosh /Hindustan Times via Getty Images)
The Tata group is set to complete acquisition of Wistron's Bengaluru iPhone plant by April end. This will pave the way for India's first 'local' production line for Apple.
News reports say the Indian conglomerate has already begun making organisational changes at the plant.
Around 2,000 factory workers may need to leave as part of the takeover of the Bengaluru iPhone plant, as well as around 400 mid-level executives. Additionally, some senior level executives have already been let go or are in the process of exiting.
Wistron's plant in India produces iPhone 12 and 14 with eight production lines. Rumors suggest that Tata may manufacture iPhone 15 after acquiring the plant.
Wistron's Bengaluru plant, measuring some 22 lakh square feet, and previously the sole producer of Apple products in India, is being sold. The Taiwanese electronics company will withdraw entirely from the Indian iPhone market, valued at $600m.
Apple reportedly plans to move 25% of its global production from China to India as it shows interest in India's manufacturing capabilities. This decision seems partly motivated by the current geopolitical tensions between the US and China.
Wistron said it is leaving India's iPhone business back in 2020, while Foxconn and Pegatron have expanded production lines recently. The trio - Wistron, Pegatron and Foxconn - all Taiwanese firms - are currently assembling Apple products in India.
Tata group meanwhile has boosted business with Apple by hiring more workers for their plant in Hosur, Tamil Nadu, which produces iPhone components.
The Tata Group is reportedly considering manufacturing for Apple as a lucrative prospect, as the Indian Government is wooing the tech giant to relocate production to India. It is anticipated that Tata may also acquire Pegatron's iPhone manufacturing units once the Wistron acquisition concludes, according to insiders.
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