Tata Group close to buying Pegatron's iPhone manufacturing in India

Tata Group is in advanced discussions to acquire control of Pegatron Corp.'s iPhone manufacturing operations in India, potentially finalizing the deal as early as May. This move would solidify Apple Inc.'s ties with one of India's most prominent conglomerates.

The negotiations between Tata Group and Pegatron involve Tata taking a majority stake in Pegatron's Apple handset assembly operations in India. These operations include an existing iPhone production facility near Chennai in Tamil Nadu and another facility currently under construction.

After the acquisition, Pegatron is expected to provide Tata with its manufacturing expertise. Tata Electronics Ltd. is slated to oversee Pegatron's operations following the completion of the deal, according to sources familiar with the matter who spoke on the condition of anonymity.

Representatives from both Tata and Pegatron declined to comment on the ongoing negotiations.

This potential agreement aligns with Apple's strategy to increase production in India, supported by financial incentives from the government led by Prime Minister Narendra Modi. Apple aims to diversify its supply chain away from China to mitigate geopolitical risks.

Modi's administration has offered production-linked subsidies to incentivize major Apple suppliers like Foxconn Technology Group and Pegatron to expand their production capacities in India.

Tata Group's involvement in iPhone assembly began with the acquisition of an iPhone factory from Wistron Corp. in Karnataka. Additionally, Tata plans to construct a new iPhone production plant to further strengthen its partnership with Apple.