Taiwanese original equipment manufacturer, Wistron is planning to expand its investment in India. The company is planning to invest nearly Rs 1,300 crore for increasing the production capacity of its facility at Narasapura located in Bengaluru. As per executives, Wistron has acquired 43 acres in Narasapura. However, only 40% of the area is utilised. It is expected that future investment will help the company to get more business from its clients such as Apple. The investment made by Wistron will be strategic to increase contribution from India. Apple was requesting liberty in FDI, and finally, India has eased foreign direct investment in single-brand retail. It is expected that Apple will take more interest in its local manufacturers.
Apple is Trying to Scale-up its Local Manufacturing Revenue Through Contract Manufacturers
As reported by ET Telecom, Apple is planning to shift nearly a fifth of its production unit from China to India. Not only this, but Apple is also trying to scale up its local manufacturing revenue through its contract manufacturer. iPhone maker is planning to scale $40 billion in revenues over the next five years. Apart from Wistron, it is also expected that Foxconn will also invest in its production plants to increase the manufacturing capacity. Narasapura Plant has already received a whopping amount of Rs 1,600 crore in September. With the fresh investment, Wistron will nearly invest Rs 2,900 crore in Narasapura plant to increase the production capacity of the plant and increase the revenues.
Wistron Will Enhance Assembly Line of iPhones
Wistron assembles the older models of iPhone in India. Currently, the company produces iPhone SE and 6S. However, it is expected with the investments in its production plants based in India, Wistron will enhance its assembly line and produce more models of iPhone. Since the trade dispute has been happening between China and the US, all the companies based in China with an American client’s portfolio are looking out for different ways to reduce the impact of the tariff war. As Wistron will increase the production capacity in India, the impact of tariff war will certainly reduce in future.