Tata buys majority stake in iPhone-maker Pegatron's India unit
What's the story
Tata Electronics Private Limited (TEPL) has successfully acquired a 60% controlling stake in the Pegatron Technology India Private Limited (PTI), a major assembly partner for Apple.
The strategic move comes as part of Tata's plan to ramp up its iPhone production capacity in India.
The acquisition was announced by TEPL, a fully owned subsidiary of Tata Sons. Taiwan-based Pegatron runs an iPhone manufacturing plant near Chennai in Tamil Nadu.
Deal details
Financials of the Pegatron deal are undisclosed
The financials of the Pegatron deal are undisclosed. But, Tata has confirmed that this acquisition is in line with its strategy to expand its manufacturing presence in India.
"As part of this deal, in addition to acquiring a majority stake in PTI, TEPL and PTI will work on integrating their teams to work seamlessly," the company said.
The statement also detailed plans for rebranding PTI under its new ownership structure while continuing to provide high-quality electronics manufacturing services.
Growth strategy
Tata's expansion in electronics manufacturing
This purchase comes less than a year after Tata Electronics acquired smartphone assembly firm Wistron's Indian business.
The deal with Wistron included buying its operations based in Narsapura, Karnataka in March 2024 and the iPhone assembly unit in Bengaluru for $125 million in November 2023.
"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," Randhir Thakur, the CEO and MD of Tata Electronics.
Strategic partnership
Growing influence in Apple's Asian operations
Tata, which began assembling iPhones in India only last year, is quickly emerging as an important partner for Apple in Asia.
The move comes as Apple looks to diversify its manufacturing base beyond China.
This acquisition further strengthens TEPL's position as a major player in the Indian electronics manufacturing sector.