Tata Sons has increased Tata Electronics’ authorized equity capital to Rs 10,000 crore, a fivefold rise from the previous amount. The current paid-up capital is Rs 3,961 crore, indicating a potential new investment of over Rs 6,000 crore.
In the last financial year, Tata Sons invested Rs 2,140 crore in Tata Electronics, marking the highest annual investment since the company was founded in 2020. Tata Electronics had also secured loans totaling Rs 6,311 crore by March 2024.
Tata Electronics is the group’s latest venture in electronics manufacturing services. The company recently acquired Wistron’s iPhone manufacturing facility in Karnataka and announced plans to invest Rs 91,000 crore in a plant in Gujarat. Additionally, Tata Electronics aims to set up a large semiconductor fabrication plant with PSMC and invest Rs 27,000 crore in a new semiconductor assembly and testing facility in Assam.
Mohit Yadav, founder of AltInfo, mentioned that with its current capital structure of Rs 3,900 crore in equity and the rest in debt, Tata Electronics is set for significant expansion. The planned Rs 91,000-crore chip plant investment suggests substantial future fundraising.
In FY23, Tata Electronics reported revenue of Rs 463 crore from producing components like mobile phone enclosures, but faced a net loss of Rs 531 crore. The company competes with firms like Dixon, Foxconn, and Pegatron in the electronic manufacturing services sector.
Tata Electronics’ two major semiconductor projects are expected to create around 47,000 direct and indirect jobs. The global semiconductor market is projected to reach $1 trillion by 2030, with India’s domestic demand expected to exceed $110 billion. Tata’s entry into semiconductor manufacturing aims to enhance global supply chain resilience and position India as a significant player in this industry.
