New Delhi: The Tata Group, one of India’s largest conglomerates, is reportedly in talks to take over Wistron’s iPhone manufacturing plant in Bengaluru, India. Wistron, a Taiwan-based company, has been manufacturing iPhones for Apple since 2017.
The takeover, if it happens, could be a significant boost to the Tata Group’s manufacturing capabilities and its aspirations to become a key player in the electronics industry. It would also help the group diversify its business portfolio and reduce its dependence on traditional sectors like steel and automobiles.
The Wistron plant, located in the Narasapura Industrial Area of Bengaluru, has had a troubled past. In December 2020, a group of workers at the plant went on a rampage, destroying equipment and causing damage worth millions of dollars. The incident led to the suspension of operations at the plant and a review of Wistron’s labor practices.
The Tata Group’s interest in the plant comes at a time when India is positioning itself as a hub for electronics manufacturing. The Indian government has launched several initiatives, including the production-linked incentive (PLI) scheme, to encourage electronics manufacturing in the country. The PLI scheme offers incentives to manufacturers who produce electronic goods in India.
If the Tata Group takes over the Wistron plant, it could benefit from the PLI scheme and tap into the growing demand for smartphones in India. According to a report by Counterpoint Research, India’s smartphone market grew by 18% year-on-year in 2020, despite the impact of the COVID-19 pandemic.
The Tata Group has already made some significant investments in the electronics industry. In 2020, it acquired a majority stake in Tejas Networks, an Indian telecom equipment manufacturer. It has also launched its own line of consumer electronics products, including smartphones and smart TVs, under the brand name Tata CliQ.
The takeover of the Wistron plant would be a significant move for the Tata Group and could help it establish itself as a leading player in the electronics manufacturing sector in India. However, the deal is still in the early stages, and there is no guarantee that it will go through.
