Tata seals deal with Pegatron for iPhone plant in Tamil Nadu

 

 

According to sources, India's Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron's only iPhone plant in India, forming a new joint venture that strengthens Tata's position as an Apple supplier. Under the deal announced internally last week, Tata will hold 60% and run daily operations under the joint venture, while Pegatron will hold the rest and provide technical support, though details are not yet public. 

 

Pegatron’s Tamil Nadu facility, located in Mahindra World City near Chennai, has been instrumental in catering to the growing demand for Apple products both domestically and internationally. Tata's acquisition of this plant marks the first time an Indian company will be directly involved in the end-to-end manufacturing of Apple products, particularly the iPhone.

While the financial specifics of the deal have not been disclosed, industry experts estimate the acquisition to be valued at several hundred million dollars, reflecting the strategic importance of the facility.

Tata Group has been aggressively expanding its footprint in the electronics sector. This deal follows Tata Electronics’ foray into precision components manufacturing for smartphones, including supplying parts for iPhones. By taking control of Pegatron's facility, Tata not only gains a manufacturing base but also inherits Pegatron’s workforce and technical expertise.

This move aligns with Tata’s broader strategy to diversify its business portfolio and capitalize on India’s burgeoning electronics market. It also positions the conglomerate as a key partner for Apple, which has been steadily increasing its production capabilities in India. Also, the acquisition is a significant win for India’s "Make in India" initiative, which aims to reduce dependency on imports and create a robust manufacturing ecosystem.

The Tamil Nadu plant, now under Tata’s stewardship, is expected to boost local job creation and enhance India's technological capabilities. It also strengthens Tamil Nadu's reputation as a preferred destination for electronics and smartphone manufacturing, which already hosts facilities for major players like Foxconn, Wistron, and Samsung.

As the world watches this partnership unfold, it marks not just a milestone for Tata Group but also a significant leap forward for India’s ambitions to become a global manufacturing powerhouse.