Tata Electronics Expands Its Footprint in India's Tech Manufacturing Sector

In a significant move that underscores its commitment to the technology manufacturing sector, Tata Electronics has acquired a 60% stake in Pegatron's India unit. This strategic investment is aimed at bolstering iPhone production in Tamil Nadu, following Tata's earlier acquisition of Wistron's operations in Karnataka.

The financial intricacies of the deal have not been disclosed, but this acquisition positions Tata Electronics as a key player in Apple's supply chain, alongside Foxconn. The Competition Commission of India has already greenlit the transaction, signaling a positive outlook for the burgeoning partnership.

Strengthening India's Position in Global Tech Manufacturing

Pegatron's Chennai facility, which contributes approximately 10% of iPhone production in India, is set to benefit from this collaboration. With an annual capacity of five million iPhones and a workforce of about 10,000, the facility plays a crucial role in Apple's global operations, exporting products to North America, Asia, and Europe, while also catering to the Indian market.

The partnership between Tata Electronics and Pegatron Technology India is expected to lead to a merger of their teams, with Pegatron undergoing rebranding to reflect its new ownership structure. This move is seen as a strategic effort to navigate the challenges of slim profit margins and workforce management in the tech manufacturing sector.

Looking Ahead: Diversification and Expansion

Tata Electronics is not stopping here. The company is in talks with Chinese smartphone manufacturers Xiaomi and Oppo to produce components, aiming to diversify its portfolio beyond Apple. This initiative is part of Tata Group's broader strategy to venture into electronic and semiconductor manufacturing, healthcare, and battery manufacturing, sectors that have gained prominence in the wake of the COVID-19 pandemic.

As Tata Group continues to expand its footprint in these critical sectors, its latest acquisition of Pegatron's India unit marks a significant milestone in India's journey towards becoming a global hub for tech manufacturing.