MUMBAI: Tata Electronics has acquired a 60% stake in Taiwanese contract manufacturer 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 financial details of the stake acquisition remain undisclosed. This transaction positions Tata Electronics as a major Apple supplier alongside Foxconn, another Taiwanese manufacturer.
On Jan 7, the Competition Commission of India said it has approved Tata Electronics’ proposed purchase of a majority stake in Pegatron Technology India and its 100% arm TEL Components’ proposed business transfer to the Indian unit. CCI further said TEL Components is establishing a greenfield facility for smartphone electronics manufacturing.
Pegatron Technology India contributes approximately 10% of iPhone production in India through its Chennai facility, which has a yearly capacity of five million iPhones and employs about 10,000 people. The facility exports electronic products to Apple’s operations across North America, Asia and Europe, while serving the Indian market.
Tata Electronics and Pegatron Technology India will collaborate to merge their teams, according to a Friday statement from the Tata Sons-owned company. PTI will undergo rebranding to reflect its new ownership structure. Previously, the company renamed Wistron Infocomm Manufacturing (India) to Tata Electronics Systems Solutions.
The negotiations between Tata Group and Pegatron had extended over several quarters as the latter sought a local partner due to slim profit margins and workforce management challenges. Notably, Wistron, an early Apple supplier in India, had experienced worker unrest at its facility in late 2020, resulting in property damage and attacks on senior executives’ offices.
Tata Electronics is negotiating with Chinese smartphone manufacturers – Xiaomi and Oppo – to produce components, aiming to diversify beyond Apple and develop a business model similar to Foxconn’s. Tata Group initiated its ventures into electronic and semiconductor manufacturing (under Tata Electronics), healthcare (Tata Medical & Diagnostics) and battery manufacturing (Agratas) during Covid, responding to pandemic-related disruptions in human lives and supply chains. The conglomerate views these new enterprises as crucial for its expansion and development.
