In a groundbreaking development, Tata Group is poised to acquire Apple's supplier factory in India, heralding a historic moment as the first local company to undertake iPhone assembly. With a staggering value exceeding $600 million, the factory is currently responsible for the assembly of the iPhone 14 model and boasts a workforce of over 10,000 employees. This strategic move not only showcases Tata Group's growing prowess in the technology sector but also reinforces India's significance as a key player in the global smartphone manufacturing landscape.
What does Tata Group do?
Established in 1868 by Jamsetji Tata, Tata Group has evolved into a prominent global enterprise with its headquarters situated in Mumbai, India. The conglomerate encompasses a diverse portfolio of 30 companies spanning ten distinct verticals.
It is a privately owned amalgamation of nearly 100 companies that circumscribes several primary business sectors which include consumer products, energy, chemicals, engineering, information systems, materials, and services.
What are they doing for becoming the first iPhone Manufacturer?
Tata Group is nearing the final stages of acquiring Apple's supplier factory in India. The acquisition is expected to be completed by August, marking a significant milestone as it will be the first time a local company takes on the assembly of iPhones. This strategic move underscores Tata Group's growing prominence in the technology sector and further solidifies India's position as a key player in smartphone manufacturing.
As reported by Bloomberg, Tata Group is in advanced talks to acquire a Wistron Corporation factory located in Karnataka. This factory, valued at over $600 million, is home to over 10,000 employees and currently serves as the assembly hub for the iPhone 14 model. The potential takeover by Tata Group signifies a significant step in their expansion plans and showcases their growing presence in the technology manufacturing sector.
Wistron Corp. has committed to ship iPhones worth $1.8 billion by the end of the fiscal year in March 2024, along with tripling the workforce at the factory by the following year. As per the Bloomberg report, Tata Group, upon acquiring the factory, will honor these commitments.
The acquisition of the Wistron Corp. factory will mark the conclusion of the Taiwanese company's iPhone manufacturing operations in India. This development signifies Tata Group's entry into the iPhone manufacturing space, opening new avenues for growth and solidifying its position in the technology manufacturing sector.
Diversification of Apple in India
In recent years, the Indian government has implemented several programs aimed at promoting domestic manufacturing within the country. Simultaneously, Apple has been actively seeking to expand its iPhone production to South Asian nations, diversifying its manufacturing beyond China.
Notably, other prominent Apple suppliers, including Foxconn Group and Pegatron Corporation, have also ramped up their production in India. The prospect of an Indian brand manufacturing iPhones holds the potential to inspire other global companies to consider India as a manufacturing destination, reducing their dependence on China and fostering further industrial growth within India.
