Tuesday, May 28, 2024
Advertisement
  1. You Are At:
  2. News
  3. Technology
  4. Tata Group reportedly planning to buy Pegatron's only iPhone plant in India

Tata Group reportedly planning to buy Pegatron's only iPhone plant in India

Tata currently operates the Wistron iPhone manufacturing facility in Karnataka. If the deal goes through, this will be Tata’s second iPhone manufacturing facility in India. The deal also has Apple’s backing.

Written By: Om Gupta New Delhi Updated on: April 09, 2024 16:13 IST
Pegatron’s India plant
Image Source : REUTERS Pegatron’s India plant

After acquiring Wistron’s India operations for USD 125 million in October last year, Tata Group is now reportedly planning to acquire another iPhone manufacturing facility in India. As per reports, Tata is eyeing to acquire Pegatron’s iPhone manufacturing facility near Chennai. The deal has Apple’s backing as the company ramps up its presence in India, claimed a Reuters report. 

If the deal goes through, it will see Tata holding at least 65 percent stake in the joint venture that will operate the plant. Pegatron will provide the technical support and will have the rest of the holding. 

Tata plans to operate the JV via its Tata Electronics unit. Pegatron’s India plant has nearly 10,000 employees and makes 5 million iPhones annually, and the company manufactures iPhone 13 and 14 devices.

Pegatron has been building an additional iPhone factory in Chennai for months. The Tata deal talks may also involve taking over that facility.

Tata now operates the iPhone manufacturing plant in Karnataka, which it has purchased from Wistron. Reports surfaced in December last year that the Tata Group is planning to build one of India's largest iPhone assembly plants in Tamil Nadu's Hosur. The facility is expected to feature around 20 assembly lines and employ 50,000 workers within two years. It is expected to be operational within 12 to 18 months.

Apple is aiming to manufacture more than 50 million iPhones in India per year, as it aims to shift some of the production out from China.

A slew of initiatives by the government have fuelled the growth of manufacturing facilities, with its Production Linked Incentive (PLI) scheme for smartphone production, allowing Indian companies to compete with global electronics makers based in China. According to industry experts, India stands out as a potential hub for production amid escalating US-China tensions, owing to its substantial internal market and skilled labour force.

ALSO READ: Apple to lay off more than 700 employees after halting various projects

Inputs from IANS

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Technology