MUMBAI: Tata Electronics has acquired a 60% stake in Taiwanese contract producer Pegatron‘s India unit that operates an iPhone plant in Tamil Nadu. This follows Tatas’ earlier acquisition of Wistron’s India operations in Karnataka in March 2024.
The monetary particulars of the stake acquisition stay undisclosed. This transaction positions Tata Electronics as a serious Apple provider alongside Foxconn, one other Taiwanese producer.
On Jan 7, the Competition Commission of India mentioned it has authorised Tata Electronics’ proposed buy of a majority stake in Pegatron Technology India and its 100% arm TEL Components’ proposed enterprise switch to the Indian unit. CCI additional mentioned TEL Components is establishing a greenfield facility for smartphone electronics manufacturing.
Pegatron Technology India contributes roughly 10% of iPhone manufacturing in India by way of its Chennai facility, which has a yearly capability of 5 million iPhones and employs about 10,000 folks. The facility exports digital merchandise to Apple’s operations throughout North America, Asia and Europe, whereas serving the Indian market.
Tata Electronics and Pegatron Technology India will collaborate to merge their groups, in accordance with a Friday assertion from the Tata Sons-owned firm. PTI will endure rebranding to replicate its new possession construction. Previously, the corporate renamed Wistron Infocomm Manufacturing (India) to Tata Electronics Systems Solutions.
The negotiations between Tata Group and Pegatron had prolonged over a number of quarters because the latter sought an area accomplice because of slim revenue margins and workforce administration challenges. Notably, Wistron, an early Apple provider in India, had skilled employee unrest at its facility in late 2020, ensuing in property injury and assaults on senior executives’ workplaces.
Tata Electronics is negotiating with Chinese smartphone producers – Xiaomi and Oppo – to supply elements, aiming to diversify past Apple and develop a enterprise mannequin much like Foxconn’s. Tata Group initiated its ventures into digital and semiconductor manufacturing (below Tata Electronics), healthcare (Tata Medical & Diagnostics) and battery manufacturing (Agratas) throughout Covid, responding to pandemic-related disruptions in human lives and provide chains. The conglomerate views these new enterprises as essential for its growth and growth.
