Indian conglomerate Tata Group is finalizing an agreement to acquire the Apple vendor Wistron’s factory, making it the first Indian manufacturer to undertake iPhone assembly in the country.
Wistron’s Karnataka Factory and Commitments
Approximately 10,000 workers are currently employed at Wistron’s factory in Karnataka. According to reports, Wistron committed to shipping iPhones worth at least $1.8 billion from the factory. By the end of March 2024 in order to qualify for state-backed financial incentives.
Tata Group’s Expansion Plans and Earlier Developments
Tata Group actively participates in iPhone assembly by manufacturing the metal body at its plant in Tamil Nadu. With the acquisition of Wistron’s factory, Tata aims to enter the entire assembly business. Earlier this year, reports emerged that Wistron was planning to exit its Indian operations and sell its Bengaluru plant to Tata Group. The inability of Wistron to navigate India’s complex supply chain was the cause of its fate.
Apple’s Vendor Ecosystem and Expansion in India
In recent months, Apple’s vendor ecosystem in India has witnessed significant developments. Foxconn announced its plans to commence iPhone manufacturing at its Devanahalli plant in Karnataka. Along with a $500 million investment in its manufacturing facility in Telangana’s Kongar Kalaan. Additionally, Salcomp announced its intention to double its workforce in India to 25,000 employees by 2026.
These developments coincide with Apple’s launch of two official stores in Mumbai and Delhi. Apple reported record sales of $6 million from India this year and raised the sales target for its franchisee-owned exclusive retail stores in the country by up to 100%. India continues to be an important market for Apple as the company seeks to expand its presence and capitalize on the growing consumer demand for its products.
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