Tata Group is reportedly close to finalizing a deal to acquire a majority stake in Pegatron Corp’s iPhone manufacturing facilities in India. According to Bloomberg, the acquisition could be completed as early as May, marking a significant step in Apple Inc.’s partnership with one of India’s leading conglomerates.
The potential deal would see Tata Electronics Ltd taking over Pegatron’s operations, including an existing iPhone production plant near Chennai and another facility currently under construction in Tamil Nadu. Pegatron is expected to share its manufacturing expertise with Tata to facilitate a seamless transition.
This development comes amid Apple’s efforts to ramp up iPhone production in India, supported by the Indian government’s incentives to diversify the country’s supply chain and lessen reliance on China. With India’s growing prominence as a manufacturing hub, Tata Group’s move to acquire Pegatron’s operations signifies a strategic expansion in the technology sector.
India’s emergence as a key player in the global manufacturing landscape is evident, with the country poised to rival China’s growth trajectory. Tata Group had previously entered the iPhone assembly market by acquiring a factory from Wistron Corp. in Karnataka and plans to establish a new production plant to enhance its collaboration with Apple.
The partnership between Tata Group and Apple underscores the tech giant’s commitment to leveraging India’s manufacturing capabilities, further solidifying its foothold in the country’s market. Prime Minister Narendra Modi’s administration’s efforts to attract foreign investment and promote local manufacturing align with Apple’s ambitions to increase production and reach a wider customer base.
The reported acquisition of Pegatron’s iPhone operations by Tata Group reflects a strategic alignment of interests between key players in the technology and manufacturing sectors, positioning India as a significant contributor to the global supply chain. As the deal nears completion, all eyes are on the potential impact of this collaboration on India’s tech industry and its position in the global market.
