Tata Group has been in talks with Taiwan-based Wistron to purchase its iPhone manufacturing facility in India off its hands, taking over the 11 acres plant in Karnataka. It is being reported the acquisition worth over Rs 5,000 crores is in the later stages and is set to be completed by the end of April.
The Hindu Business Line reports that the Indian conglomerate is set to complete the takeover of the iPhone manufacturing facility of Wistron this month. Citing unnamed sources, the report further adds that Tata Group has already begun organisational changes at the facility.
iPhone 15 could be ‘made in India’
Wistron’s 44-acre facility in the outskirts of Bengaluru, with eight assembly lines, currently manufactures the iPhone 14 and iPhone 12 models. After the acquisition, Tata Group could begin the assembly of the iPhone 15 later this year.
Earlier, Bloomberg had reported that Wistron would act as a supporting partner in this joint venture, but now the report says that the Taiwanese company would wind up its operations in the country, valued at $600 million. Although, the company may continue to be a service partner for Apple in India.
In a report from Bloomberg, individuals close to the deal said the due diligence was expected to conclude in March. Upon completion, Tata Electronics Pvt. Ltd. (TEPL), the group’s engineering and manufacturing industrial company, will assume Wistron’s responsibilities in India in an official capacity.
While the group is reportedly ramping up hiring at its plant in Hosur, where it manufactures components for iPhones, it may be onto sacking workers at the Wistron plant.
Sources indicate that the takeover may require around 2,000 factory workers to depart. Additionally, a reduction of 400 mid-level executives is also on the cards. Furthermore, about 4-5 executives at the senior level have been discharged or are in the process of departing.
