Tata Group has entered into a binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong Limited to acquire 100 per cent stake in Wistron InfoComm Manufacturing (India), with Tata Group now becoming an iPhone assembler, as reported by The Economic Times.
Randhir Thakur, chief executive officer and managing director of Tata Electronics stated, “the signing of the share purchase agreement to acquire Wistron InfoComm Manufacturing (India) Private Limited is an important milestone for our company. India's EMS (electronic manufacturing services) industry is on a growth trajectory with strong support from the government."
He added "we want to be part of this growth story. We are focused on strengthening the capabilities of our manufacturing sector. I would like to thank the entire Wistron team for working with us throughout this process.”
On 27 October, the Tata Group formally announced its acquisition plan for Wistron India, saying it would pay $125 million for a 100 per cent stake in the company's assembly line.
The deal is worth a total of $750 million, including $550 million in intercompany financing from parent company Wistron India.
The Tata Group has entered the iPhone supply chain with a case factory in Hosur, Tamil Nadu, and has started manufacturing semi-finished iPhone SE models in India.
The acquisition of the Wistron division will enable Tata Group to enter end-to-end iPhone assembly in India, making it the first Indian company to join Foxconn, Pegatron, Luxshare and Wistron in manufacturing iPhones.
Bhuvan Krishna is Staff Writer at Swarajya.
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