The Tata group is reportedly in talks with Taiwanese manufacturer Wistron Corp to set up a joint venture that will assemble iPhones in India. The proposed arrangement could be expanded to include a facility manufacturing electronics items and may see the Tatas buying equity in Wistron India. The duo are also looking at the option to build a new assembly plant, a Bloomberg report said on Friday. If the joint venture is formed, the Tatas will be the first Indian company to build iPhones. The smartphones are now assembled by Wistron at it Bangalore unit and Foxconn Technology at Chennai. Any agreement will lead to an Indian company challenging the might of the Chinese in electronics.
The venture would be the Indian salt-to-software group’s latest push into technology manufacturing as it taps Wistron’s expertise in product development, supply chain and assembly. Last year, Tata Electronics Pvt Ltd signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up a unit to make mobile phone components. This created a buzz that the facility will also be used to make components for Apple Inc. Earlier there were reports that the conglomerate is planning to set up a semiconductor assembly and test unit.
N. Chandrasekaran, chairman Tata Sons, had said electronics and high-tech manufacturing are the key focus areas for the group. According to the Bloomberg report, the structure of the deal with Wistron and details such as shareholding are yet to be finalised, with talks underway between the parties.
However, it is not clear if Cupertino-based Apple was aware of the talks. The likely partnership comes at a time Apple is looking to expand outside China and improve its supply chain in India. The new venture aims to make five times more iPhones than Wistron’s present capacity in India.
There is also the possibility of Bombay House obtaining a share of Wistron’s manufacturing business beyond smartphones. Apple, Tata Group and Wistron did not immediately respond to requests for comment. Wistron began making iPhones in India in 2017, and it reportedly assembles iPhoneSE and iPhone12 in the country. Foxconn makes iPhones 11, 12 and 13 at its plant in Tamil Nadu.
The other contract manufacturer is Pegatron which makes the iPhone12. The Centre has been encouraging large scale electronics manufacturing through its production linked incentive (PLI) scheme that was approved in March 2020. The objective is to push investments in areas such as mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units. The scheme offers an incentive of 4-6 per cent on incremental sales over a base year for a period of five years.
Tata Steel bonus
Tata Steel Ltd will pay an annual bonus of Rs 317.51 crore to eligible employees in India for 2021-22. The company will also pay a goodwill amount of Rs 20,000 to the employees over and above the bonus in view of the superior performance of the company in FY22 and the efforts of the employees during the Covid pandemic.
A memorandum of settlement was signed between Tata Steel and the Tata Workers’ Union for the bonus payout for FY22 and the subsequent two years. The settlement was signed by T.V. Narendran, CEO and MD of Tata Steel, Atrayee Sanyal, vice-president (HRM) and Sanjeev Kumar Choudhury, president of Tata Workers’ Union and other union representatives.
The bonus will be distributed among 23,710 employees, including 12,213 based in Jamshedpur alone. The minimum an employee would get is Rs41,448 while the maximum would be Rs 4,58,411, excluding the Rs 20,000 goodwill amount. While the majority of the employees are drawing salary/wages higher than eligible under the Payment of Bonus (Amendment) Act, 2005, the company will pay all employees in the unionised category to respect the old tradition.