Tata Group is in talks with Wistron to buy its manufacturing facility in Karnataka for Rs 4,000-5,000 crore. The Narasapura factory is Wistron’s only factory in India and manufactures devices and components for Apple, as reported by the Economic Period (ET). It employs 14,000 to 15,000 workers.
The deal could help the Tata Group increase the manufacturing capacity of Tata Electronics Pvt Ltd (TEPL) in precision engineering, the report adds. It was incorporated in 2020 to develop mobile phone and component manufacturing following a geopolitical backlash against China.
Currently, TEPL supplies components to Apple from its Hosur unit in Tamil Nadu. It employs more than 10,000 workers, mostly women. TEPL’s exclusive deal with Apple was part of Make in India and benefits from the government’s Production Linked Incentive (PLI) scheme.
The report further states that according to sources, if the deal does not work out, Tatas may even pursue finalizing a joint venture (JV) with Wistron. This could be in line with Tata Motors’ JV with Ford in Gujarat earlier in 2022.
“Tatas will run the show, but Wistron may keep a small stake to leverage Apple’s global supplier ecosystem,” a person with knowledge of the matter said. HEY. The deal, however, is still being worked on.
Additionally, the latest infrastructural developments will facilitate travel between Karnataka and Tamil Nadu. This includes highways and high-speed Vande Bharat trains which will significantly reduce travel time between Chennai and Bengaluru.
Currently, Apple produces iPhone SE, iPhone 12, iPhone 13 and iPhone 14 in India.
