Tata Group in talks to acquire majority stake in Pegatron's Chennai iPhone factory
Pegatron is in advanced talks to sell a majority stake in its iPhone manufacturing unit near Chennai to Tata group, people aware of the matter told ET.
«The deal is expected to be completed in the coming two to three months, or, (at the) latest, by the second quarter of the fiscal year,» said one of the persons. «However, as of now, it's unclear if this will be a Wistron-type buyout or a joint venture.» Both options are said to be on the table.
Wistron, like Pegatron and Foxconn, is a Taiwan-based contract manufacturer for Apple. Tata group acquired its local operations for $125 million (₹1,000 crore) in November last year, becoming the first Indian company to manufacture iPhones.
Asked about the potential Tata acquisition, minister for electronics, IT and railways Ashwini Vaishnaw told ET, «Happy to note that Indian champions are emerging in mobile phone manufacturing. As the sector grows, more and more young citizens are finding new employment opportunities.»
A person in the know said the transaction amount is set to be lower than that for the Wistron deal.
Pegatron Smaller Than Wistron
This is because Pegatron is a smaller firm and there will be less than two years remaining under the production-linked incentive (PLI) scheme by the time the acquisition is completed.
Tata group is expected to complete the deal through its subsidiary Tata Electronics, said one of the people cited above.
Experts said Apple may want the deal closed as soon as possible because it wouldn't want any ownership confusion ahead of
