Tata Group in advanced stages to acquire Wistron’s Karnataka plant

It is understood that the Tata Group is in advanced stages of acquiring the Karnataka manufacturing unit of Taiwan-based Wistron, the contract manufacturer of Apple, to become India’s first iPhone manufacturer, sources said.

They added that the acquisition will be made through Tata Electronics, a wholly owned subsidiary of Tata Sons, the promoter holding company of the Tata Group.

When reached for comment, the Tata Group declined to comment. The email sent to Apple did not elicit a response. Wistron could not be reached for comment.

According to one source, public announcement of the development will depend on what Apple chooses as the company closely controls its ecosystem.

It is possible that apart from the iPhone, once the Karnataka plant is acquired by Tata Group, other new Apple products could also be assembled from the unit.

The recent move by Tata Group to acquire Apple’s supplier unit is also expected to boost Apple’s efforts to leverage production prowess outside of China and boost momentum in the world’s second-largest smartphone market.

Following a news report earlier this week, Minister of State for Electronics and Information Technology Rajiv Chandrasekhar tweeted, “Bringing National Champions into global electronics value chains is one of the key policy objectives of PLI wise scheme PMnarendramodi ji.”

“This news about TataCompanies approaching manufacture of the iconic iPhone for global markets is a very positive development and will help grow India’s EMS and supply chain/component ecosystem,” wrote Chandrasekhar.

He added, “GoI_MeitY welcomes this move, congratulations to the Tata and Apple team.”

While the booming smartphone market has added luster to India globally, New Delhi’s policy push in the electronics sector has prompted major suppliers to expand aggressively in the country, and prompted new players to establish a base.

As it is, the vibrant Market of India turns into a hot spot for the iconic brand in Cupertino, California.

In May this year, Apple CEO Tim Cook said India was an “incredibly exciting market” and a “key focus” for the company, and the iPhone maker also highlighted that business in India “has a record quarterly, growing Very strongly, double digits. On a year-on-year basis.”

India is at a “turning point,” senior officials said during the company’s second-quarter earnings call.

Apple planned an ambitious retail expansion into India this April, when it launched retail outlets here, in Mumbai and Delhi, during Cook’s first trip to the country in seven years.

Cook said during the quarterly earnings call that the dealers are “off to a great start.”

“Looking at the business in India, we had a record quarter-over-quarter, we grew very strongly, we grew double digits year-over-year. So it was a good quarter for us, taking a step back, India is an incredibly exciting market,” Cook said.

Other Taiwanese Apple suppliers, such as Pegatron Corp., have also moved up here.