Tata Electronics Acquires 60% Stake in Pegatron India
A significant fillip to the 'Make in India' initiative was given by the acquisition of Tata Electronics with 60% shares in the Pegatron Technology India, which is one of the biggest manufacturers of Apple products, including iPhones. The acquisition makes Tata Electronics the leading player in India's burgeoning electronics manufacturing business.
This acquisition is the second of Tata Electronics' after it had bought Taiwanese electronics manufacturer Wistron's India operations in Narsapura, Karnataka, for $125 million less than a year ago. This deal is in line with Tata Sons' Chairman N. Chandrasekaran's vision of creating significant investments in India's electronics manufacturing ecosystem.
With this acquisition, Tata Electronics and Pegatron will merge their teams, and Pegatron will be rebranded to reflect the new ownership and business direction. The deal will help expand Tata Electronics' manufacturing footprint and further solidify its role in Apple's iPhone production network in India.
As such, Dr Randhir Thakur, the CEO and MD of Tata Electronics, said that the acquisition of a majority stake in Pegatron Technology India Private Limited fits into the strategy of growth for Tata Electronics on growing its manufacturing footprint. "We are looking forward to a new era of AI, digital, and technology-led manufacturing as we bring these new facilities on stream and enhance our operations here in India".
Pegatron's India plant currently employs about 10,000 people and makes iPhone 13 and iPhone 14 models. It is part of Tata Electronics' plan to deepen its hold in the Apple supply chain.
It earlier received CCI nod this month to take the stake in Tata Electronics. This deal further facilitates Tata Electronics to grow its footprints in electronics manufacturing, primarily within the network of Apple production lines in India.
Launched in 2020, Tata Electronics is a greenfield venture of the Tata Group and has expanded its operations in Gujarat, Assam, Tamil Nadu, and Karnataka to employ more than 50,000 people. Tata and Pegatron join Foxconn as key players in India's iPhone manufacturing network.
Apple's production in India has grown in the recent past, and the company has recorded Rs 1 lakh crore in iPhone exports in 2024. Industry estimates indicate that Apple's exports crossed $12 billion in 2024, showing over 40% growth from 2023. Apple's domestic production has also increased by nearly 46%, which helped create 1,75,000 direct jobs, with over 72% of these being women.
