The Tata Group is reportedly in talks with Taiwan-based Wistron Corp to join the ranks of iPhone makers in India, as Apple looks to broaden its Indian manufacturing unit. Wistron, a supplier to Apple, will establish an electronics manufacturing joint venture in the country along with the Tata Group, if the talks reach to an agreement, according to a new report.
As per a report by Bloomberg quoting people with knowledge of the matter, the Tata Group is keen on seeking Wistron’s expertise in product development, supply chain and assembly to turn itself into a key player in technology manufacturing.
If the talks take shape and the pact is successfully implemented, Tata Group could become the first Indian company to manufacture Apple iPhones, capturing a market that sees a monopoly of Taiwanese manufacturing giants including Wistron and Foxconn Technology Group in China and India.
“The structure of the deal and details such as shareholdings are yet to be finalized, and talks are ongoing,” Bloomberg quoted the sources, who did not wish to be named, as saying. With the plan being successful, Tata is likely to buy equity in Wistron’s operations in India. Alternatively, both the companies could also build an assembly unit in the country. The Tatas have an option to do both at once, as well.
Bloomberg said in its report that it was not immediately clear if Apple was aware of the talks, which come at a time when the tech giant is looking to deepen its supply chain in India and diversify more production away from China. If the talks succeed, the move will be a major boost to the Indian market and its technology sector, and is likely to create more jobs in the sector. The move will also be a boost to the government’s push to ‘Atmanirbhar Bharat’, as assembling and manufacturing iPhones indigenously will aid to the self-reliant mission of India.
Both Tata Group and Apple have not issued any statement regarding the talks, while Wistron declined Bloomberg’s request to comment on the matter.
As per the report, the new venture aims to multiply the number of iPhones Wistron manufactures in India by as much as five times in the future. As per the sources, the move could also result in the Tatas buying a share of Wistron’s manufacturing business other than just smartphones.
Tata Sons chairman N Chandrasekaran has said that going forward, electronics and high-tech manufacturing are key focus areas for the company. The latest report is in line with Chandrasekaran’s plans.
Read all the Latest Business News and Breaking News here
Comments
0 comment