Tata Group may complete the takeover of Wistron's Bengaluru-based iPhone plant by the end of April. According to the report of Business Line, after the takeover of Tata Group, India will get its first domestic i.e. indigenous production line for Apple products.
According to the report, Tata Group has also started making organizational changes in the plant. The factory is likely to lay off around 2,000 employees as part of the acquisition process. About 400 mid-level employees can also be retrenched from this plant. Also, about four to five senior level officers are in the process of being pulled out or have been asked to leave.
It is being speculated that after the acquisition, the Indian group may start making iPhone-15 at the plant. Currently Wistron's Indian plant is manufacturing iPhone-12 and iPhone-14 in its 8 production lines. After the acquisition of Tata, Wistron will be completely out of the Indian market, as it is the only plant of the company producing Apple products in India.
The Indian market for Apple products is estimated to be around $600 million. This acquisition is being seen as an important development, especially at a time when Apple is eyeing India for manufacturing. Because, Apple wants to shift its manufacturing from China.
Last year, the Cupertino, California based company had announced plans to shift around 25% of its global production to India due to the dispute between China and the US. Of the three Taiwanese firms that assemble Apple products, only Wistron is leaving India. Whereas, Foxconn and Pegatron have increased their production lines in India.
Tata has also taken several other steps to increase its business with Apple. That includes hiring more at the Tamil Nadu plant, where iPhone components are made. There is also speculation that the Tata group may also acquire Pegatron's manufacturing units for the iPhone.
