News Brief
Tata Set To Acquire Second Apple Plant In India, Eyes Majority Stake In Pegatron's iPhone Factory In Tamil Nadu: Report
Nayan Dwivedi
Apr 09, 2024, 03:12 PM | Updated 03:12 PM IST
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Tata Electronics, a major player in India's electronics manufacturing sector, is on the brink of acquiring Pegatron's India unit, as per reports by TOI.
If finalized, this deal would mark Tata Electronics' second acquisition, following its takeover of Wistron InfoComm Manufacturing (India).
According to reports, negotiations are at an advanced stage, with discussions revolving around ownership structures.
Tata Electronics is poised to secure a majority stake of over 50 per cent in Pegatron India, while the remaining shares will remain with the original promoter, Pegatron.
Pegatron India currently operates a manufacturing facility near Chennai, Tamil Nadu, where it produces approximately five million iPhones annually, employing around 10,000 workers.
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While financial details of the potential acquisition remain undisclosed, Tata Electronics stands to significantly enhance its iPhone manufacturing capabilities through this venture.
Additionally, Tata Electronics is expanding its production lines at its facility in Hosur, Tamil Nadu, specializing in iPhone enclosures.
As part of the acquisition, Pegatron India intends to establish a second manufacturing facility in close proximity to its existing plant near Chennai, representing a substantial investment of $150 million.
Notably, Pegatron India currently accounts for 10 per cent of Apple's iPhone production in the country.
Beyond Pegatron and Tata Electronics, Foxconn remains another key contract manufacturer for Apple in India.
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Nayan Dwivedi is Staff Writer at Swarajya.
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