Tata Explores Deal to Purchase Pegatron's iPhone Manufacturing Business

Tata Group's potential acquisition of Pegatron's iPhone manufacturing operations represents a pivotal development in India's smartphone manufacturing sector, underscoring Apple's commitment to diversifying its supply chain and expanding its presence in the country. The collaboration between Tata Group and Pegatron holds 

Tata Group's Potential Deal with Pegatron:

• Tata Group is reportedly in advanced negotiations to acquire a majority stake in Pegatron Corp.'s iPhone manufacturing operations in India.

• The deal, expected to be finalized as early as May, signifies Apple Inc.'s deepening relationship with Tata Group, one of India's most influential conglomerates.

Negotiation Details:

• The negotiations involve Tata Group taking control of Pegatron's Apple handset assembly operations, including an existing production plant near Chennai in Tamil Nadu and another facility currently under construction.

• Sources familiar with the matter reveal that the deal is in its final stages, with Tata Group poised to become the majority stakeholder in Pegatron's India-based operations.

Expected Collaboration:

• Upon completion of the transaction, Pegatron is anticipated to provide Tata Group with manufacturing expertise, enhancing the conglomerate's capabilities in iPhone production.

• The collaboration aims to leverage Pegatron's technological prowess and industry experience to optimize iPhone manufacturing processes in India.

Role of Tata Electronics Ltd.:

• Tata Electronics Ltd. is slated to oversee Pegatron's operations following the completion of the deal, consolidating Tata Group's position in the iPhone manufacturing ecosystem.

• The involvement of Tata Electronics Ltd. underscores Tata Group's commitment to expanding its footprint in the lucrative smartphone manufacturing sector.

Official Responses:

• While representatives from Tata Group declined to comment on the negotiations, Pegatron has yet to respond to requests for comment regarding the potential agreement.

• The discreet nature of these responses reflects the confidential nature of the ongoing discussions and their sensitivity within the business landscape.

Context of Apple's Expansion in India:

• Apple's increased focus on boosting production in India is driven by strategic imperatives, including government incentives provided by Prime Minister Narendra Modi's administration.

• Modi's government has offered production-linked subsidies to incentivize key Apple suppliers like Pegatron and Foxconn to scale up manufacturing operations in India.

Tata Group's Growing Presence in iPhone Manufacturing:

• Tata Group initially entered the iPhone assembly arena by acquiring an iPhone factory from Wistron Corp. in Karnataka.

• The conglomerate's strategic move to expand its iPhone production capabilities aligns with its broader partnership goals with Apple, signaling its ambition to become a significant player in India's smartphone manufacturing landscape.