Tata Group Nears Majority Stake Acquisition in Pegatron's India iPhone Plants

The Tata Group, one of India's most influential conglomerates, is in the final stages of negotiations to acquire a majority stake in Pegatron Corp.'s iPhone manufacturing operations in India. The deal, which could be finalized as early as May, encompasses Pegatron's existing production facility near Chennai, Tamil Nadu, and another plant currently under construction.

Following the transaction, Tata Electronics Ltd. is set to oversee Pegatron's operations, with the Taiwanese company providing manufacturing expertise to support the transition. This acquisition would strengthen Apple Inc.'s relationship with the Tata Group, as the tech giant accelerates its efforts to boost iPhone production in India.

The potential agreement comes as part of Apple's broader strategy to diversify its production base beyond China, amidst growing geopolitical tensions and supply chain vulnerabilities. The Indian government, under Prime Minister Narendra Modi, has been actively promoting domestic manufacturing through various incentives, aiming to attract global tech giants and their suppliers.

Why this matters: The Tata Group's acquisition of Pegatron's iPhone manufacturing operations in India marks a significant milestone in Apple's efforts to expand its production footprint in the country. This deal not only strengthens the relationship between Apple and the influential Indian conglomerate but also aligns with the Indian government's push to boost domestic manufacturing and attract global tech investments.

The Tata Group first entered the iPhone assembly realm by acquiring a factory from Taiwan's Wistron Corp. in Karnataka. The conglomerate also plans to build a new iPhone production plant to further strengthen its partnership with Apple. "The transaction would cement Apple Inc.'s relationship with the influential Indian conglomerate," as the tech giant looks to leverage India's financial incentives and growing manufacturing capabilities.

Key Takeaways

• Tata Group in final talks to acquire Pegatron's iPhone ops in India.
• Deal to strengthen Apple's relationship with Tata, boost iPhone production.
• Acquisition part of Apple's strategy to diversify production beyond China.
• Indian govt offering incentives to attract global tech firms and suppliers.
• Tata Group expanding its iPhone assembly capabilities in India.