November 16, 2020: Cupertino-based Apple supplier Wistron Infocomm has commenced the expansion of its facility in Kolar near Bangalore, as per a report by Ultra News. This comes in the backdrop of Apple’s efforts to ramp up the production of assembled-in-India iPhones.
The publication cited air conditioning equipment provider Blue Star’s regulatory filing that said, “Wistron is a Taiwan-based contract manufacturer of electronic goods and is one of the major manufacturers of iPhones for Apple. Wistron has been producing Apple devices at its existing factory at Kolar, Bengaluru, and has now embarked upon its Phase II expansion as a part of which it is constructing a large manufacturing block and an IT building.”
The development comes in the wake of the Government of India’s efforts to cut down on India’s dependence on China in the electronics and telecommunications domain.
Taiwanese Wistron is one of the three Apple suppliers that are planning to invest upto $1 billion under the Production Linked Incentive or PLI scheme.
As per a report by news agency Reuters, Wistron plans to invest around Rs 1,300 crore to expand its capacity from around 200,000 units per year to 400,000 units per year which will further lead to the creation of 10,000 jobs in the country.
Under the PLI scheme, phone manufacturers will receive a 4-6% incentive on the value of incremental production that they achieve under the scheme.
However, for foreign players like Wistron, the scheme is available only to those phones priced above $200 per piece.
Apple India’s revenue increased by 29% in FY20 to reach Rs 13,755.8 crore, as per a separate Reuters report.
While the net profit stood at Rs 926.2 crore in FY20 in India, as against Rs 262.27 crore in the preceding fiscal, Reuters said.
Source: Economic Times
