TATA To Acquire Pegatron India: 2nd After Wistron
By: Geetanjali
Reportedly, Tata Electronics, a subsidiary of Tata Sons, is looking forward to acquiring the Indian manufacturing unit of Taiwan based iphone manufacturing company Pegatron India based in Chennai. This step by Tata is to strengthen its relationship with Apple and increase market share in the manufacturing business.
Pegatron India has its manufacturing unit set up in Chennai, which employs around 10,000 people and manufactures more than 5 million iPhones in a year.
This will be the second acquisition, after Tata Electronics acquired Taiwanese company Wistron Corp. Karnataka plant. Presently, there are only three iPhone manufacturing units in India: Foxconn, Pegatron, Tata Group (earlier Wistron Corporation), Pegatron India is also planning to establish its second manufacturing unit with an investment of $150 Million, in India and after the acquisition of Pegatron India by Tata Electronics, the second plant will automatically come under Tata’s jurisdiction. Due to this acquisition India will contribute around 10% of total global iPhone manufacturing.
After the acquisition Tata Electronics will own more than 60% stakes in Pegatron’s Indian manufacturing unit and the rest will be owned by its Taiwanese company Pegatron (it is Taiwan’s second largest contract electronic manufacturing unit).
The Global tech giant, Apple is trying to diversify its manufacturing sources from China after the conflict between the U.S and China increased in the last few years. As per Reuters report, the three manufacturing units in India will contribute 20-25% of total iPhone shipment this year, a 12-14% increase from last year.
