Tata’s acquisition of Wistron facility could lead India in high-end manufacturing
Tata group’s recent deal to acquire Wistron InfoComm Manufacturing (India) Private Ltd which is engaged in manufacturing of Apple products is a strategic move that could help India to take lead in high-end advance manufacturing. The conglomerate has a high chance of success through buying its way into iPhone manufacturing. Wistron Corp., a Taipei-based maker of computers, servers and smartphones, is slowly exiting its business of assembling Apple Inc.’s marquee product.
Tata faces stiff competition from Taiwan’s Foxconn Technology Group and Pegatron corp. Buying a top-end factory from Wistron to move into assembly is an incremental step for Tata, not a completely fresh start, and augurs well for a successful future. As per Bloomberg, Tata has been in talks for more than a year to take over the Bengaluru plant as it seeks to forge closer ties with Apple. Tata has also taken other steps to increase its business with Apple.
Tata’s strategic move could prove as a lesson to big business houses of the country.
