Motherson JV Set to Join Apple Vendors' Family Circle in India
The Motherson Group is on the cusp of joining the expanding Apple supply chain network in India, alongside Hong Kong-based BIEL Crystal Manufactory, one of the world's foremost suppliers of smartphone glass. According to insiders, this development will see the Vivek Chaand Sehgal-led auto component maker become the second major Indian business group after Tata to become a vendor for Apple. This move aligns with Motherson’s strategy to leverage its core manufacturing capabilities to diversify into other sectors.
Founded in 1989 by billionaire Yeung Kin-man in Shenzhen, China, BIEL initially produced watch crystals. The company claims to be one of the pioneers in manufacturing glass screens for mobile devices, transitioning from plastic to glass in the early 2000s. Estimates suggest that BIEL currently produces glass screens for two out of every three iPhones globally.
The new joint venture, with a 51:49% stake favoring the Indian company, plans to establish a greenfield manufacturing facility in southern India, likely in Tamil Nadu. The investment for this facility is projected to be between Rs 2,000-2,500 crore. The venture aims to achieve a turnover of Rs 8,000-8,500 crore within four to five years of commencing operations, with the consumer electronics business expected to go live in the July-September quarter.
BIEL’s existing plants in Guangdong, China, and Bac Ninh and Hai Duong in Vietnam are already approved vendors for Apple in India. Besides Apple, BIEL supplies components for smartphones, tablets, and wearables to other major brands, including Samsung, Xiaomi, and Lenovo.
Representatives from Motherson, Apple, and BIEL did not respond to requests for comments. Motherson's founder and chairman, Sehgal, cited a silent period ahead of quarterly financial disclosures as the reason for his inability to comment.
In January, Samvardhana Motherson International Ltd (SMIL), part of the Motherson Group, announced that its subsidiary, Samvardhana Motherson Innovative Solutions Ltd (SMISL), was entering a series of agreements with BIEL Crystal (Singapore) Pvt Ltd. This agreement included BIEL’s investment in Motherson Electronic Components Pvt. Ltd (MECPL), a wholly-owned subsidiary of SMISL. Although both parties signed a definitive agreement at the time, specific details of the joint venture were not disclosed.
The agreement stipulated BIEL’s investment in MECPL through 0.01% compulsorily convertible preference shares (CCPS), convertible to 10% equity and potentially to 49% on a fully diluted basis. BIEL and its affiliates would also provide technical and technological assistance to MECPL. The agreement included shareholding and management rights, allowing SMIL to appoint a majority of MECPL's directors, while BIEL could nominate directors proportional to its shareholding up to 49%. Any issuance of equity shares or convertible securities to third parties would require the consent of both parties.
Amid escalating geopolitical tensions, Apple has been encouraging its suppliers to diversify production bases to mitigate the risks of over-concentration and reliance on China. Countries in Southeast Asia, such as Vietnam, Malaysia, Thailand, and the Philippines, are also positioning themselves to benefit from this diversification strategy.
The surge in Apple iPhone exports from India has propelled electronics to third place among India's top 10 exports by the end of the June quarter, surpassing gems and jewellery. The Tata Group has invested over $1 billion in greenfield projects and acquisitions to enhance its engagement with Apple.
Corning, a key Apple supplier known for its Gorilla Glass, is set to begin production at its Tamil Nadu facility in the second half of 2025, according to a senior executive.
Sehgal has been eager to apply Motherson’s core manufacturing expertise to new industries, including aerospace, healthcare, medical appliances, logistics, and electronics. Under his Vision 2025 plan, 25% of the projected $36 billion revenue is expected to come from these new sectors. The group has already made significant strides in aerospace with four acquisitions and is establishing a greenfield unit in Chennai for healthcare. Strategic partnerships, such as the one with BIEL, are crucial to Motherson's diversification efforts. The group currently maintains 28 partnerships with technology leaders across auto and non-auto segments.
BIEL had initially planned a $1.5 billion public offering in Hong Kong in 2017, which was delayed due to market volatility from the China-US trade wars. The plans were revived in June 2021, with recent reports that the IPO could raise up to $2 billion.
