Wistron has authorised its Indian subsidiary to spend Rs 3,000 crore ($340.62 million), for expanding and meeting region’s demand for its services in future
Taiwan-based original equipment manufacturer (OEM), Wistron Corporation, is planning to expand its investment in India for increasing the production capacity of its facility in Narasapura, an industrial area situated around 50 km from Bengaluru, revealed a report in Taiwanese publication Digitimes.
Wistron is reported to be looking to complete the first-stage expansion of its plant in Narasapura within the first half of 2019.
The company has authorised its Indian subsidiary to spend Rs 3,000 crore ($340.62 million), for expanding and meeting region’s demand for its services in future, Wistron said in filing with the Taiwan Stock Exchange (TWSE).
Presently, the Taiwanese contract manufacturer has a paid-up capital of Rs 180 crore for its operations in India, making the investment a substantial increase in its resources.
To enhance assembly lines for iPhones
Wistron is the first contract manufacturer to begin assembling of iPhones in India. Currently, the company is producing older iPhone models – SE and 6S. However, it is expected that the company, with the expansion, could enhance its assembly lines to include more models of iPhone.
With the ongoing trade dispute between the US and China, the companies based in China and having American clients are looking for ways to reduce the impact of tariff war. The Wistron plan to expand in India for producing more devices will help the company in avoiding the tariff war.
The company is also planning to shift some of its businesses of PC, Internet of Things (IoT), cloud service and medical to the country, the report said.
Wistron is not the only Apple supplier who is looking to enhance its production in India. In December last year, another Taiwanese major Foxconn was planning an investment of $214 million to expand its plant in the country, for accommodating production of iPhone.