Major Stake Acquisition by Tata Electronics
In a significant move, Tata Electronics has acquired a 60% stake in Pegatron’s India unit, a Taiwanese contract manufacturer that runs an iPhone plant in Tamil Nadu. This acquisition marks Tata’s entry into the Apple supply chain, putting them in league with major players like Foxconn.
Competition Commission of India Approval
The Competition Commission of India has given the green light to Tata Electronics’ acquisition of the majority stake in Pegatron Technology India. This approval also includes the proposed business transfer of TEL Components to the Indian unit, where a new greenfield facility for smartphone electronics manufacturing is being established.
Production and Employment Impact
Pegatron Technology India’s Chennai facility is responsible for about 10% of iPhone production in India, with an annual capacity of five million iPhones. The plant employs approximately 10,000 workers and exports electronic products to Apple’s facilities worldwide while catering to the Indian market.
Collaboration and Rebranding
Tata Electronics and Pegatron Technology India are set to collaborate and integrate their teams following the stake acquisition. A statement released by Tata Electronics mentions that PTI will undergo a rebranding process to reflect its new ownership structure, similar to the renaming of Wistron Infocomm Manufacturing (India) to Tata Electronics Systems Solutions.
Diversification and Business Expansion
In addition to their partnership with Apple, Tata Electronics is also in talks with Chinese smartphone manufacturers like Xiaomi and Oppo to produce components. This move aims to diversify their portfolio beyond Apple and follow a business model akin to Foxconn’s. The Tata Group’s foray into electronic and semiconductor manufacturing, healthcare, and battery production during the Covid-19 pandemic underscores their commitment to growth and adaptability in the face of global disruptions.
Random Humanizing Touch:
Imagine being a worker at the Pegatron Technology India facility, witnessing firsthand the transition of ownership and the potential changes that may come with it. The uncertainty of the future, coupled with the excitement of new collaborations and possibilities, creates a mix of emotions for the employees. From the production line to the boardroom, each individual plays a vital role in shaping the success of this acquisition, highlighting the human aspect behind the corporate decisions that impact lives and livelihoods.
