Make-in-India success: Tata Group could soon become country's first iPhone maker. Details inside

In what comes as a resounding win for the Make-in-India initiative, Tata Group may soon be assembling iPhone in the country. India's largest conglomerate is closing in on an agreement to acquire Apple's supplier's factory as soon as August, marking the first time a local company would move into the assembly of iPhones, according to a Bloomberg report.

Tata will be acquiring Taiwan-based Wistron Corp's factory in Karnataka.Currently, iPhone 14 is assembled at thefactory which will be overseen by Tata, once the deal is finalised. The Karnataka facility is valued at more than $600 million and employs more than 10,000 workers.

"A takeover of the Wistron Corp. factory in southern Karnataka state, potentially valued at more than $600 million, would cap about a year of negotiations, said the people, asking not to be named as the matter is private," the publication reported.

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Wistron has committed to shipping at least $1.8 million worth of iPhones from the factory in thefiscal year through March 2024 to earn the financial incentives. Moreover, it has put plans in motion to triple the plant's workforce by next year. Once Tata takes over, it will have to honour those commitments which the legacy brand has already agreed to.

Deal to reach fruition

There had been murmurs surrounding the deal for months. Earlier, it was reported that the two firms had discussed potential tie-ups, but talks settled with Tata Group taking on the complete duties. The Indian company is likely to oversee manufacturing operations while Wistron provides support during the transition period.

Notably, Apple, one of the world's most valuable companies, relies on Taiwanese manufacturing giants such as Wistron and Foxconn for manufacturing and assembly of its flagship iPhones.

Tata, anIndian success story

For decades, Tata has been the symbol of India's indigenous capabilities. From salt to tea to passenger airlines to tech services, Tata has found success in nearly every field it has dipped its toes in.

Thecompany assembling the iPhone could significantly boost Prime Minister Narendra Modi's efforts to challenge China's status as the factory of the world.

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Apple has been looking at India as an alternative to China for a long time. The crackdown on the tech sector by Xi Jinping and the slowdown in growth after the pandemic in the mainland have only accelerated the process.

The news of the near closure of the deal comes a day after the Indian government suffered a setback in the form of Vedanta and Foxconn parting ways. The two companies had signed a deal to set up a mega semiconductor manufacturing facility in the country but could not work out the finer details of the deal, eventually calling it quits.

(With inputs from agencies)

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