Tata-Wistron Deal: Tata Group is likely to buy Wistron Corp’s Karnataka-based manufacturing unit. Apple’s iPhone and other products are being manufactured in this unit. This deal is likely to be worth approximately 4 to 5 thousand crores, if this deal is finalized, then the problem related to the production of iPhone can be solved.
However, it is worth mentioning that apart from Tata, two more companies are trying to buy it. Let me tell you that due to the current lockdown in China, the largest iPhone manufacturing company has closed down.
TEPL is a wholly owned subsidiary of Tata Sons. Group chairman N Chandrasekhar is making a move, keen to seize the opportunity to counter the political climate in China that has turned against Jio. Under which India is trying to attract companies like Apple for optional production sites of smartphones. The deal will help the Tata group expand the manufacturing capacity of Tata Electronics Pvt Ltd (TEPL).
TEPL is a component vendor of Apple
TEPL is already a component vendor for Apple for iPhones and is also planning to deal with other major manufacturers in Korea and Japan to establish itself globally. TEPL’s current exclusive partnership with Apple is part of PM Narendra Modi’s Make in India push and is leveraging the government’s Manufacturing Linked Scheme, which was launched in August 2020. Now there is no comment from the Tata Group and no statement from Wistron either.
A deal can also be done in this way
According to a Bloomberg report in September, the Tata company is currently considering forming an electronics manufacturing joint venture with Wistone. Sources informed that the group was moving fast towards purchasing a unit at Narsapura in Kolar district of Karnataka. The Tata Electronics facility is located in Hosur, Tamil Nadu. Sources close to Tata said, if the facility purchase does not work out, they are likely to go the joint venture route independently.
Another person said Dean could be on the lines of a takeover of Tata Motors’ Ford unit in Gujarat earlier this year. This includes sale and leaseback structures. Tata will do its job, but Wistron may retain a smaller stake to take advantage of Apple’s global vendor ecosystem. The final deal is now being outlined.
According to government officials
According to government officials, an industrial corridor with high-end infrastructure and connectivity is being planned in Tamil Nadu and Karnataka to facilitate electronics manufacturing. This will include highways and high-speed Vande Bharat trains to reduce the travel time between their capital Chennai and Bengaluru by 3.5-4 hours. Foxconn, Pegatron and Wistron are the three largest vendors of Apple in India. Apple currently manufactures the iPhone SE, iPhone 12, iPhone 13 and iPhone 14 (basic) models in India. All Pro models sold in the rest of the country are imported.
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