Tata Group, one of India’s leading conglomerates, is on the verge of finalizing a deal to acquire Pegatron Corp’s iPhone manufacturing operations in India, potentially solidifying Apple Inc.’s ties with the influential Indian business giant. Sources familiar with the matter have disclosed that Tata Group is in the last stages of negotiations with Pegatron to secure a majority stake in the Taiwanese company’s Apple handset assembly operations in India. These operations include an existing iPhone production facility near Chennai in the southern state of Tamil Nadu, as well as another facility currently under construction.
Upon completion of the transaction, Pegatron is anticipated to extend its manufacturing expertise to Tata, aiding in the seamless transition of operations. The deal would see Tata Electronics Ltd taking charge of Pegatron’s operations, according to the sources who requested anonymity due to the confidential nature of the information. Earlier this month, Reuters had reported on the ongoing discussions. However, representatives for Tata declined to comment on the matter, while Pegatron did not respond to requests for comment.
The potential agreement emerges amidst Apple’s concerted efforts to bolster its production capacity in India, buoyed by financial incentives extended by the government of Prime Minister Narendra Modi. These initiatives are part of Apple’s broader strategy to diversify its supply chain away from China, thereby mitigating geopolitical risks.
Prime Minister Modi’s administration, in its bid to boost domestic manufacturing and attract foreign investment, has rolled out production-linked subsidies aimed at incentivizing key Apple suppliers like Taiwan’s Foxconn Technology Group and Pegatron to scale up their operations in India.
For Tata Group, this potential deal marks a significant milestone in its relationship with Apple. Previously, Tata Group ventured into iPhone assembly by acquiring an iPhone manufacturing facility from Taiwan’s Wistron Corp. in the neighboring state of Karnataka. Additionally, Tata Group is in the pipeline to establish a new iPhone production plant, further strengthening its collaboration with Apple.
As negotiations reach their climax, industry observers anticipate that the acquisition of Pegatron’s iPhone operations by Tata Group could herald a new era of technological advancement and economic growth in India’s manufacturing landscape.
