Motherson JV set to join Apple vendors' family circle in India
Motherson Group is poised to enter the growing Apple supply chain network in India along with Hong Kong-based BIEL Crystal Manufactory, one of the world’s largest suppliers of glass for smartphones, said people with knowledge of the matter. This will make the Vivek Chaand Sehgal-led auto component maker the second large business group after Tata to become a vendor for Apple as part of Motherson’s plan to use its core manufacturing prowess to diversify into other segments.
BIEL was established in 1989 by billionaire Yeung Kin-man in Shenzhen, China, to make watch crystals. The company says it’s one of the earliest manufacturers of glass screens for mobile devices, having begun in the early 2000s, when they were made mostly of plastic. By some estimates, BIEL currently produces glass screens for two of every three iPhones.
The 51:49% alliance, the Indian company will have the majority stake, is planning to set up a greenfield manufacturing capacity in the south, most likely Tamil Nadu, with an estimated outlay of Rs 2,000-2,500 crore, said the people cited above. It aims to hit a turnover of Rs 8,000-8,500 crore in four-five years after operations start. The consumer electronics business is scheduled to come onstream in the July-September quarter.
BIEL’s plants in Guangdong, China, and Bac Ninh, Hai Duong Vietnam, were on the approved list of vendors for Apple in India. It also supplies parts for smartphones, tablets and wearables to Samsung, Xiaomi and Lenovo among others.
A Motherson spokesperson didn’t respond
