Tata Group Eyes On Purchasing Pegatron Sole India iPhone Plant: Insights into Apple Global Supply Chain Strategy

Tata Group Eyes On Purchasing Pegatron Sole India iPhone Plant.[Credit: FirstPost]

Tata Group Eye On Purchasing Pegatron Sole India iPhone Plant: In spite of geopolitical tensions and Apple's supply chain diversification strategy, the deal aims to boost iPhone manufacturing in India.

Tata plans to own at least 65% of the Pegatron plant near Chennai city in Tamil Nadu, which Apple supports.

According to one source, the Taiwanese company will provide technical support and hold the remainder.

According to reports, Tata will operate the joint venture through its Tata Electronics unit. BT could not independently verify the report.

It is Pegatron's last such plant after it surrendered control of a Chinese iPhone plant to rival Luxshare last year in a $290 million deal.

Apple employs nearly 10,000 people and produces 5 million iPhones a year.

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Sources declined to disclose the financial details of the negotiations. Pegastron and Tata did not respond to email requests for comment.

Due to ongoing geopolitical tensions between the US and China, Tata's acquisition of Pegatron will further enhance Apple's iPhone manufacturing capabilities in India.

Pegatron may become Tata's joint venture partner in Hosur, Tamil Nadu, where Tata is building another iPhone assembly plant.

Besides purchasing another iPhone factory at Pegatron's Chennai campus, the deal is expected to be finalized within six months. Pegatron India employees will move to the joint venture.

Pegatron India employees will move to the joint venture entity once talks between Tata and Pegatron for the factory are concluded in six months. Tata, Pegatron, and Foxconn are currently Apple's iPhone contract manufacturers in India.

According to analysts, Tata will contribute 20-25% of iPhone shipments this year, up from 12-14% last year, making it a key component of Apple's growing ambitions in India.

According to Pegatron, the China plant deal was done to raise capital to "optimize the company's business."

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