On October 27th, Tata Electronics unveiled its plan to acquire a 100% stake in Wistron India for approximately $125 million. If the deal is approved by the authorities, Tata will be the first Indian company to manufacture iPhones. Previously, Tata manufactured iPhone casings at a plant near Hosur in Tamil Nadu.
“Signing of the Share Purchase Agreement to acquire Wistron InfoComm Manufacturing India Private Limited is an important milestone for us. The EMS (Electronic Manufacturing Services) industry in India is poised for growth given the strong support from the Government, and we are happy to be participating in this growth story,” Dr Randhir Thakur, CEO and MD of Tata Electronics said in a statement.
The Tata Group has also taken other steps to strengthen its business with Apple. Including accelerated hiring at its Hosur facility. The plant also stands on several hundred acres of land using which Tata Group could increase their manufacturing capacity in the future. Tata has also announced that it will launch 100 Apple authorised stores. By joining Apple's global supply chain, Tata Electronics will be able to tap into the global market, and replicate their current model.
The percentage of iPhone units made in India that are shipped globally is expected to rise from 14 percent to between 20 to 25 percent by 2024. Apple Inc. will be scaling up production in India by over five-fold to around $40 billion in the next 4 to 5 years, PTI reported citing government sources. This decision is linked with Apple’s aims to focus on building a supply chain based on home-grown and non-Chinese companies, and the Government of India’s Production Linked Incentives (PLIs) to increase foreign investments and production facilities in India. Until June 2023, the PLI for large scale electronics manufacturing has seen investments worth Rs 6,887 crore, already surpassing the Rs 5,488 crore target for FY24.
Thus, although Tata’s manufacturing of iPhones does not have a significant, direct impact on consumers, Apple’s increased investment in India and Indian companies, could be seen by other firms as a sign of confidence in India’s production and manufacturing sector, which could increase foreign investments in the country, creating
more jobs and contributing to general economic growth, having long lasting effects on our growing economy.
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