Mumbai, Jan 25: In a fillip to the government’s ‘Make in India’ initiative, Tata Electronics on Friday acquired a controlling 60 per cent stake in Pegatron Technology India, which produces Apple products like iPhones.The acquisition boosts the company’s position as a major player in India’s electronics manufacturing industry.
This follows Tata Electronics’ acquisition of Taiwanese electronics manufacturer Wistron’s India operations (based in Narsapura, Karnataka) for $125 million less than a year ago, furthering Tata Sons’ Chairman N Chandrasekaran’s vision of significant investments by the Tata Group in electronics manufacturing.
Both Tata Electronics and Pegatron would integrate their teams, with Pegatron undergoing a rebranding as part of the collaboration as the part of the deal.
“The acquisition of a majority stake in Pegatron Technology India Private Limited fits into Tata Electronics’ strategy of growing our manufacturing footprint,” said Dr Randhir Thakur, CEO and MD of Tata Electronics.
We look forward to a new era of AI, digital, and technology-led manufacturing as we bring up these new facilities and expand our operations in India, he added.
Pegatron’s India plant has nearly 10,000 employees, and the company manufactures iPhone 13 and 14 devices.
Earlier this month, Tata Electronics received approval from the Competition Commission of India (CCI) to proceed with the stake acquisition. This move is part of Tata Electronics’ strategy to grow its presence in Apple’s iPhone production network in the country.
As part of the deal, Pegatron India will undergo rebranding to reflect its new ownership structure and business direction while continuing to deliver high-quality electronics manufacturing services.
Established in 2020 as a greenfield venture of the Tata Group, Tata Electronics currently employs over 50,000 people and has significant operations in Gujarat, Assam, Tamil Nadu and Karnataka.
The iPhone contract manufacturers in India now include Foxconn, Tata and Pegatron.
Riding on the production-linked incentive (PLI) scheme and growing premiumisation trend, Apple clocked Rs 1 lakh crore in iPhone exports from India in the calendar year 2024.
According to early industry estimates, Apple exported more than $12 billion worth iPhones last year, which is more than 40 per cent growth from 2023.
Apple’s domestic production has surged nearly 46 per cent from a year ago, as per estimates.
The Apple ecosystem has also created 1,75,000 new direct jobs in four years with “over 72 per cent women”.