Wistron has $165 million for India plant expansion

Wistron plans to invest an additional Rs. 1,300 crore ($165 million) at its upcoming facility outside Bengaluru, a senior company executive said, as the Taiwanese contract manufacturer expects more business from its clients such as Apple.

ET reported recently that the iPhone maker was examining the possibility of shifting nearly a fifth of its production capacity from China to India and scaling up its local manufacturing revenue, through its contract manufacturers, to around $40 billion over the next five years. It is expected to be through contract manufacturers Wistron and Foxconn. The Wistron plant in Narasapura, around 65 kilometres from the state capital, received Rs. 1,600 crore in September, up from a planned Rs. 900 crore. The fresh investment will see that swell to a total Rs. 2,900 crore.

The executive said the investment is strategic, to increase contributions from India. “There is an interest in manufacturing in India from our clients,” said the executive, requesting anonymity. Wistron has acquired 43 acres in Narasapura, of which only 40% has been utilised.

Wistron’s increased investment in Karnataka, while not exclusive to manufacturing Apple products, also comes at a time when India has eased norms for foreign direct investment in single-brand retail, which Apple has been requesting.

—Gadgets Now