In a significant move, Tata Electronics Private Limited has received approval from the Competition Commission of India (CCI) for its proposed acquisition of Wistron InfoComm Manufacturing (India) Private Limited. This strategic deal involves the purchase of the entire equity share capital of Wistron Infocomm, positioning Tata Electronics as a key player in the iPhone production landscape.
Details of the Acquisition: The CCI approval marks a crucial step in Tata Electronics’ acquisition journey. The deal encompasses the acquisition of 100% equity share capital of Wistron Infocomm Manufacturing (India) Private Limited from SMS Infocomm (Singapore) Private Limited and Wistron Hong Kong Limited by Tata Electronics Private Limited. Tata Electronics, a greenfield venture of Tata Sons Private Limited, is making noteworthy strides with this acquisition.
Wistron Infocomm’s Role in iPhone Assembly: Wistron Infocomm Manufacturing India, established in 2017 by the Wistron group, currently operates an iPhone assembly plant near Bengaluru. The manufacturing facility became a focal point of discussions after Wistron faced a $7 Mn loss due to employee agitation at the Bengaluru plant in recent months.
In November, Tata Group achieved a significant milestone by
completing the acquisition of Wistron’s manufacturing facility in Karnataka
. This strategic move signified Tata Group’s entry into iPhone assembly, reinforcing its commitment to the evolving landscape of electronics manufacturing.
Apple’s Push for Increased Production in India: Apple, the global tech giant, has been actively seeking avenues to enhance its production in India. The company has set ambitious targets, aiming for a production scale of around $40 Bn by 2027, a substantial increase from the current levels. In the last fiscal year, Apple’s manufactured products in India exceeded $7 Bn, according to government officials.
Tata Group’s Landmark Achievement: With the completion of the acquisition, Tata Group secures its position as the first Indian company to enter iPhone production. While this marks a new chapter in Tata’s journey, it’s worth noting that the group already manufactures the metal body for iPhones at its facility in Tamil Nadu.
Prospects for iPhone 17 Production: Industry analysts foresee significant developments in Apple’s manufacturing ecosystem in India. Collaborators such as Foxconn, Pegatron, and now Tata Group are anticipated to commence iPhone 17 production in India during the second half of 2024. This aligns with Apple’s strategic vision for increased localization and production efficiency.
As Apple aims to conclude 2023 with a 7% market share in India, traditionally dominated by Android smartphones, the collaboration with Tata Group underscores the tech giant’s commitment to strengthening its foothold in the Indian market.
