Tata's iPhone Gambit: How Apple Boosted Indian Electronics Maker’s Revenue 9-Fold

Tata Electronics, one of the newest arms of Tata Group, has reported a nine-fold jump in its revenue.

In financial year 2022-23, the company reported ₹401 crore in consolidated income. But in FY2024, this figure surged to ₹3,802 crore, according to regulatory filings accessed by The Economic Times.

Tata Electronics-Wistron Deal

So, what changed for the electronics maker? In its own words, this multi-fold growth was driven by the acquisition of iPhone contract manufacturer Wistron's India business.

Last year, Tata bought Taiwan-based electronics manufacturer Wistron's India business for 125 million dollars. Wistron India, which has been renamed Tata Electronics Systems Solutions, has a plant near Bengaluru in Karnataka.

At the time of the deal announcement in October 2023, the plant had four assembly lines for iPhone 14 production. It was employing almost 15,000 people at this unit.

Only Indian iPhone Manufacturer

The takeover of the Wistron India plant enabled the Tata group company to officially join the Apple supply chain as an iPhone assembler. It also made it the only homegrown iPhone assembler in India.

But this was just the beginning of the Tata-Apple ties. The Tatas, who set up Tata Electronics in 2020 to provide integrated electronics and semiconductor value chain offerings to global customers, are already working on taking the Apple partnership to the next level.

Tata Electronics’ Hosur Plant

And the next chapter in this story is being written in Tamil Nadu's Hosur, where Tata Electronics has set up its second iPhone manufacturing plant. This is also Apple's fourth iPhone unit in India.

According to a report by Business Standard, the manufacturing of iPhones at the Tata Electronics Hosur unit is likely to start in November.

The report further adds, quoting sources, that the Tatas are planning to invest over 6,000 crore rupees in the plant spread over 250 acres. The unit is likely to employ 50,000 workers, mostly women.

Apple’s Production Diversification

The Tata-Apple partnership is a key component in the Cupertino, US-based tech giant's efforts to diversify operations beyond China.

According to a report from the Wall Street Journal, Apple and its suppliers have set a goal to manufacture over 50 million iPhones annually in India over the next two to three years. And Tata Electronics looks set to take the lead in this.