Tata Group All Set To Acquire Wistron's iPhone Facility In Bengaluru: Report
About 2,000 workers at the factory are likely to get laid off as a part of the takeover process, according to the report
Tata Group is likely to complete acquisition of Wistron's iPhone plant in Bengaluru by the end of April, according to a report by Business Line. This move, if materialises, will make India its first home-grown production line for Apple products. According to the report by the publication, Tata Group has already started making organisational changes at the plant.
Business Line has reported that about 2,000 workers at the factory are likely to get laid off as a part of the takeover process. The plant is also likely to see attrition of around 400 mid-level employees. Also, about four to five senior-level executives have been in the process of exiting or have been asked to go.
It is being speculated that after the takeover, the Indian conglomerate is likely to start making iPhone 15. Currently, Wistron’s Indian plant is manufacturing iPhone 12 and iPhone 14 in its eight production lines.
After Tata takes over the Bengaluru plant, Wistron will be completely out of the Indian market as this was its only plant to produce Apple products in India.
India's market for Apple products is estimated to be around $600 million. This takeover is being pegged as a significant development, especially at a time when Apple is eyeing India for manufacturing as it plans a shift from China.
Last year, Cupertino, a California-based company announced its plans to shift around 25 per cent of its global production to India due to the conflicts between China and the USA.
Out of the three Taiwanese firms that assemble Apple products in India, Wistron, Pegatron, and Foxconn, Wistron is leaving India, while Foxconn and Pegatron have increased their production lines in India.
Tata Group has taken various other steps to expand its business with Apple, which includes more hiring at its Tamil Nadu plant, where iPhone components are made. There are also speculations that Tata will likely acquire Pegatron’s manufacturing units for iPhone.
Meanwhile, India's first Apple Store will open at Jio World Drive Mall at Mumbai's Bandra Kurla Complex, and will be dubbed "Apple BKC". The Mumbai store sports a unique facade inspired by black-and-yellow taxi art unique to the city.
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