Tata Group secures Rs 7,600 crore for electronics business funding

Tata Electronics, a subsidiary of the Tata Group, has secured funds of over Rs 7,600 crore for its new electronic component and contract manufacturing business. This funding has been arranged through a combination of capital infusion by the parent company, Tata Sons, and secured loans. According to filings made to the Registrar of Companies (RoC), Tata Electronics received a capital infusion of over Rs 608 crore from Tata Sons in the financial year 2022-23, marking the highest capital infusion in a single year. Over the past three years, the total capital infusion stands at Rs 1,820 crore.

The company's authorized capital is reported to be Rs 2,000 crore, and it has also raised secured loans amounting to Rs 5,799 crore. However, the recent capital infusion has nearly exhausted the funding limit from the parent company, leaving a balance funding capacity of only Rs 180 crore to be utilized. To expand further, Tata Electronics will need to increase its authorized share capital limit. Additionally, it is possible that a portion of the secured loans of Rs 5,799 crore has already been repaid.

Tata Electronics Pvt Ltd (TEPL), established in 2020, specializes in manufacturing precision electronic components. Its manufacturing facility is located in the Krishnagiri district of Tamil Nadu, where it aims to create a positive socio-economic impact. The organization also seeks to make a difference in the surrounding areas by providing intervention and assistance in areas such as health, hygiene, and education.Tata greenfield electronic component, contract manufacturing business