Tata already has an iPhone assembly plant in Karnataka. (File)
New Delhi:
Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron's only iPhone factory in India, forming a new joint venture that strengthens Tata's position as an Apple supplier, two sources told Reuters.
Under the deal announced internally last week, Tata will own 60% of the shares and run day-to-day operations under the joint venture, while Pegatron will hold the rest and provide technical support, the two sources said, declining to elaborate. are mentioned because the details are not yet public. .
The sources did not elaborate on the financial details of the deal.
Tata declined to comment, while Apple and Pegatron did not respond to questions from Reuters on Sunday.
Reuters was first to report in April that Pegatron had the backing of Apple and was in advanced talks to sell its sole iPhone factory in India to Tata, marking the Taiwanese company's latest move in its Apple partnership.
Apple is increasingly trying to diversify its supply chain outside of China amid geopolitical tensions between Beijing and Washington. For Tata, the Pegatron plant in Chennai will strengthen its iPhone production plans.
Tata is rapidly expanding into iPhone manufacturing, competing with Foxconn, the only other iPhone contract manufacturer operating in India.
The announcement for the closing of the deal was made internally at the iPhone factory on Friday, the first source said. The second source said the two companies plan to apply for approval from the Competition Commission of India (CCI) in the coming days.
Tata already has an iPhone assembly plant in Karnataka, which it acquired from Taiwan's Wistron last year. The company is also building another in Hosur in Tamil Nadu, where it also has an iPhone components factory that was involved in a fire incident in September.
Analysts estimate that India will contribute 20 to 25% of total iPhone shipments this year, compared to 12 to 14% last year.
The Tata-Pegatron plant, which employs about 10,000 people and makes 5 million iPhones annually, will be Tata's third iPhone factory in India.
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