New Delhi Stock Exchange：It's cruel!India's strongest consortium, raid Guo Taiming, hunting Foxconn

December 01, 2023 10:46:42

Robbery while the fire was fierce.

Wen | Chinese Business Tao Lue Geng Kangqi

On April 18 this year, the first official retail store in India opened in Mumbai.At the moment of opening the door of the store, CEO Tim Cook, CEO of Apple, was rare, and welcomed guests in the eight parties with India's Holy Ritual.

But his greater purpose of this trip is not opening a shop.

【OEM Dark Horse】

After seven years, Cook visited India in April this year, in order to:

Fully bless India's proportion in Apple.

At that time, Apple's upcoming 2023 secondary fiscal quarterly report showed that as of April 1, its total revenue and net profit both fell 3%year -on -year, but the iPhone's revenue increased against the trend by 1.5%, far exceeding market expectationsEssence

One of the heroes behind it is the Indian market.

In the previous year, Apple's sales in India have reached a record of nearly 6 billion US dollars, soaring by nearly 50%over the same period.In the market share of more than $ 800 in India, Apple accounts for 2/3 of Apple, and one is unique.

But Cook looks farther and wants to get more.He said to the media without concealment: "India is at a turning point, it will become one of the largest markets of Apple. Everything here is possible."

As the world's second largest smartphone market and the world's fifth largest economy with nearly 700 million smartphone users, India can indeed bring more apples.

One of them is that Apple products can be more affordable in terms of price.

In the past many years, India has almost the consumption place of "the world's most expensive Apple mobile phones". As a result, this result is not a high cost such as Apple specializing in Indians, but 22%of India's 22%of import tariffs.

This also means that if Apple can produce locally in India, its final price will be expected to be reduced to a considerable degree, which will cover more consumer groups.It also means that Apple can make double carving in India:

On the one hand, reducing dependence on the Indian supply chain, on the other hand, it also makes itself more competitive in the Indian local market.

Therefore, in 2017, Cook once on the production line of Lixun, whether Apple would transfer some of the supply chain to India and Southeast Asia, and responded categorically. "We will not transfer production in order to reduce costs."India has begun to produce the news of low -end iPhone.

Compared with the diversified layout of Samsung in 7 countries including Argentina, Vietnam, India, almost all hardware products were manufactured in India before.However, under various complex causes in the past two years, it has accelerated the pace of diversified supply chain.

India is the main position of its continuous increase.

From 2021 to April this year, in just two years, Apple's iPhone's production in India accounted for nearly 7%from 1%.In the last fiscal year, its output value in India had exceeded 7 billion US dollars, and it was still growing at high speed.

In November this year, Guo Mingzheng, an expert in fruit chain and Tianfeng International analyst, also predicts that about 14%of the iPhone worldwide will be produced in India in 2023, and this proportion will reach 25%in 2024.

Cook also said that Apple not only regarded India as a large market, but also regarded India as a global manufacturing and innovation center.

To achieve this goal, Apple needs more labor, larger and more powerful foundries, and the competition for Apple for various foundry companies has also shifted to the Indian battlefield, which is dark.

Foxconn, the "royal foundry" of Apple, has always been regarded as Apple's most competitive founding king in India. Foxconn itself is also full of energy and constantly increase its investment in India.

However, it is contrary to his wishes. The Foxconn agencies have progressed slowly in India. Not only did they operate only 35,000 workers for many years, they were less than the zero of Foxconn workers in India.

As a result, Foxconn has become increasingly losing the favor of Apple. It has lost a lot of OEM share, and even the exclusive orders of high -end mobile phones such as iPhone15 Pro have been allocated to competitors and Scholar Hexun Precision for the first time.

What is worse than Foxconn, it is the Weichin Zitong manufactured by India in 2006. In 17 years, it continued to buy land to build factories. After the fruit chain entered India, it also stepped up and diligently.

It covers an area of ​​44 acres in the factory near Bangall, with 8 production lines and tens of thousands of workers. It is one of the main assembly sites of iPhone 12 and iPhone 14.

However, what Wei Chuang got in the end was a lot of controversial treatment with the local losses.

In the end, it simply decided to make India's efforts for more than 10 years.

On October 27 this year, Wei Chuangzi was acquired in the iPhone assembly department of India.The other party obtained 100%equity of the Local Weicuang Zitong Manufacturing Company and paid $ 125 million for production line payment.

Suddenly, the people who were killed were a bit unexpected, because it was neither an old friend who had a deep intersection with Apple, such as Foxconn, nor a professional foundry, but had India, which was called a second giant.Local capital and advantages.

It is the largest enterprise and consortium in India -Tata Group.

With this acquisition, Tata became the first Indian company to enter the fruit chain.

The Minister of State of the Ministry of Electronics and Information Science and Technology Rajiv Charlasecar, so excitedly said: "This is a historic moment, marking the rise of our electronic manufacturing industry."

On this day, not only the Indian government was looking forward to it, Tata also worked silently for many years.New Delhi Stock Exchange

【Back Step Camp】

In 2016, Cook visited India for the first time as Apple CEO. At that time, India knew that Apple people were less than half of their total population.

When Cook met with business people, Natallazan Chandlasecan, then the CEO of the Tatta Consulting Company of the Tata Group, still stood on the side of the group's head of Misterid, to the Apple technology andProducts to blow rainbow fart.

One year later, the Tata Group's power earthquake, the former chairman of the group, Misteri, went out of the bureau, Chandra was in danger and became the largest company in India. The first helm from the family outside the family in 150 years.

At that time, the Tata Group, which has been acquired for more than 20 years, has been an international giant that spans multiple industries such as steel, automobiles, and software consulting.But it is also facing the huge challenges of liabilities, business loss, plunge in profit, and customer loss.Varanasi Wealth Management

Chandella sorted out the old business of the group and improved its performance; he vigorously tap new business and find a new growth curve.Digitalization, new energy, elastic supply chain and medical health are regarded as the four most worthwhile themes.

When Apple and Indian manufacturing are ambitious, Tata's high attention and confidence in entering the field of electronic manufacturing have become logical.In 2020, Tata established a manufacturing subsidiary Tata Electronics, which also began to approach the foundry Apple.

At that time, the Indian Tamil Nadang government announced the 2020 electronic hardware manufacturing policy. Its goal was to increase the output value to $ 100 billion by 2025, accounting for a quarter of the total exports of Indian electronic products.

Under this goal, Tamilnadbon also defeated Canatakbon and won Foxconn's foundry project.

The strength of Tata Electronics at that time was not enough to rush into the game, and a share.However, it has retired. Although there are more than 100 mobile phone production companies from India, mobile phone parts still import their own opportunities:

Investing in 50 billion rupees, a new factory has been established in Tamil Nadang, and it has promoted it to become the first iPhone component company in India. The specific business is to create shell parts for iPhone.

Tata originally planned to hire 90%of women's 18,000 employees by October 2021.But in November last year, Tata revised the plan, raised the goal to up to 45,000 female workers in two years, and established a new production line.

This means that Tata successfully tasted the sweetness of creating parts for the iPhone, and he also had even more ambitious.

The apple supply chain established by Cook has three floors.The first layer is a component supplier like Tata, which can only drink soup in the entire fruit chain; the second layer is the inventory participant of the supply chain, classify, store and transport the components to the third floor.He Shuo and other final assembly.

Become a three -story foundry, is the choice of eating meat in the fruit chain.However, assembling the iPhone by himself is still a challenging task for Tata, so when Wei Chuang was in the storm, Tata stared at it for the first time.

Wei Chuang's technical and equipment, rich supply chain management and assembly experience are the urgent needs of Tata. The local policies and labor challenges faced by Wei Chuang can also be solved by Tata.

As a result, Tata generously proposed to establish a joint venture with Wei Chuang in 2022.However, after a year of negotiations, it finally chose to swallow Weisen, who was struggling in the mud, and thus became one of the three major apple foundry giants in India.

According to Guo Mingzhang's analysis, Tata Electronics, Foxconn and Harmony are expected to start the iPhone 17 trial production process as early as the second half of 2024.This also marks that Apple will first develop and manufacture new iPhones overseas in India.

Tata is also intensifying and doubled all kinds of preparations to pay perfect transcripts to Cook.

Over the past year, Tata Electronics has used an attractive condition of 20%of the salary, interviewing mold designers, high -precision processing technology engineers and other positions.As of September 2nd, only 30 of more than 700 job seekers were hired, and they all worked as technical staff in Foxconn.

Tata also launched a customized "digital manufacturing" diploma. 300 students need to pass the nine -month factory practice and three -month courses for state universities.

Prachir Singh, a senior analyst of market intelligence company, said that this shows the long -term vision of Tata and the sincerity of building an iPhone manufacturing ecology.

In fiscal 2023, Tata Electronics lost about $ 64 million, but the Tata family still raised more than 76 billion rupees (about 910 million US dollars) funds through capital injection and guarantee loans.The group not only attaches great importance to the foundry apple, but also is determined.

【The Giant Elephant of Attack】

Pay more attention to Tata's foundry is its strong group strength.Mumbai Wealth Management

Since its founding company in 1868, it has been founded by Jamshetegi Tata. For more than a half century, Tata Group is in many areas of India and is in an absolute leader.

India's first luxury hotel, the first steel production base, the first aviation operating company, the first software service company, the first independent automobile manufacturing company, etc., were born in Tata Group.

In 155, after various storms and turbulent towers, not only did it not be rich in three generations, it became stronger.

From 2022 to 2023, Tata's total revenue was 150 billion US dollars and hired over 1 million.As of July 31, 2023, Tata has a total of 29 listed companies, with a total market value of 300 billion US dollars.

Master the tower from salt and tea to software, automobiles, telecommunications, etc., the penetration and influence of the local industries, and the sensitivity and resource allocation ability of industrial policies and employment culture.Those can match.

In 2015, as soon as Xiaomi entered the Indian market, he introduced the investment of Ratan Tata, a retired head of Tata, who was retired, and was interpreted by the outside world as a "worshipers" that flattened the Indian market obstacles.

Most of India is cautious about factories with more than 40,000 workers to avoid possible legal and order issues.And some laws are not allowed to set up female workers' dormitories in the factory, but Apple foundries require refined operations, often 70%of workers are women.These issues are big problems in Foxconn and Weichuang, but for Tata, which already owns countless huge factories and one of the largest female employers in India, the problem is not so big.

Analyst Prachir Singh also pointed out, "If you want to succeed in India, you must carry out a group operation. These implementation requires huge investment. Only large enterprise groups like Tata can do this."

Moreover, Tata is sincere and effort to the foundry iPhone.

A Weichin executive said that Tata did not hesitate to pay for the management team's salary ** and retain talents.

According to industry experts, Tata is expected to receive 5%of Apple OEMs, but this may be just a starting point for it to compete for iPhone.

Once the acquisition of Weichun is completed, Tata may seek to continue to acquire another major foundry enterprise and the iPhone manufacturing department in India.

More importantly, by improving his position in the apple value chain, Tata can also do one thing to develop its own iPhone shell parts to a higher level, and even drive the development of the Indian local fruit chain.

At present, in addition to the foundry, Tata is different from that of Foxconn and other foundry companies only for Apple foundry, and plans the possibility of becoming an apple all -round service supplier and partner.

At the end of 2022, Apple announced that it would cooperate with Tata's Infiniti retail company to open 100 Apple stores slightly less than the flagship store in India.

On July 10, 2023, Foxconn's wolf withdrew from the 19.5 billion US dollars in Indian semiconductor projects in cooperation with the Wenda Group of India.

Chandella has announced high -profile that Tata will invest 90 billion US dollars into mobile parts and semiconductors in the next five years.

This seems to be a relative space, and it also shows that the attack of Tata cannot be underestimated.

【Reference Information】

[1] "Indian Tata hopes to get more shares from Apple iPhone orders" REST of World reports

[2] "Eight Inner Constellation of Apple Supply Chain" wisdom

[3] "The first Indian local manufacturer is expected to" break into "the first Finance of the Apple mobile phone assembly supply chain"

——End —————

Welcome to pay attention to [Huashang Tao Lue], know the characters of the wind, and read the legend of Tao Tao.

All rights reserved, prohibit private reprint without permissionKanpur Investment

Part of the picture comes from the Internet

If it involves infringement, please contact to delete

Udabur Stock