Tata Group is reportedly close to acquiring a major factory in southern India, which would make it the first homegrown company that produces iPhones in the country.

The factory in Karantaka is currently owned by Taiwanese company Wistron Corporation, which assembles iPhones for Apple.

Tata Group and Wistron have been in talks for months, and the deal is expected to be completed by the end of March, Bloomberg reported citing people familiar with the process.

Under the proposed arrangement, Tata would take a majority stake in a joint venture with Wistron, with Tata overseeing the main manufacturing operations and Wistron providing support.

If the deal goes through, it is expected to value Wistron's only iPhone manufacturing plant in India at over $600 million.

This acquisition would be a significant development for India's efforts to create local companies that can challenge China's dominance in the electronics industry, which has been threatened by ongoing political tensions with the US and the impacts of the Covid-19 pandemic.

Currently, iPhones are mainly assembled by Taiwanese companies like Wistron and Foxconn Technology Group, but the Tata Group deal would enable India to become a key player in the production of these devices.