The Tata Group will purchase the India division of Wistron Corp., a contract manufacturer for Apple Inc., for $125 million. With board permission, the business will sell Tata Electronics Pvt. a 100% share in the division Wistron InfoComm Manufacturing (India) Pvt. According to a Wistron exchange filing, the settlement date will determine the ultimate transaction price, which will also take the adjustments into consideration.
The deal has been finalized after strategic considerations in response to the reshaping of the group's product strategy and global manufacturing layout. Tata Electronics is a wholly-owned subsidiary of Tata Sons Pvt., the promoter holding firm of the Tata Group. The group has sought to make inroads into electronics production and e-commerce.
TEPL already operates a manufacturing facility in the Krishnagiri district of Tamil Nadu. The Wistron Karnataka assembly factory is located near Bengaluru.
Union Minister of State for Electronics and Technology Rajeev Chandrasekhar said the government "stands fully in support in growth of Global Indian Electronics companies that will in turn support global electronic brands that want to make India their trusted manufacturing and talent partner".
The Wistron plant in Karnataka witnessed trouble in late 2020 after workers went on a rampage due to wage-related issues. The company then sacked its vice president overseeing its business in India, as it admitted that some workers were not paid correctly or on time, and had offered an apology. Operations resumed in March 2021 after the state government intervened.
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