Tata Electronics Picks Up 60% Stake In Pegatron India

SUMMARY

Tata Electronics has acquired a 60% controlling stake in Pegatron India, marking its second major acquisition after Wistron India in March 2024

The Chennai facility of Pegatron India has a production capacity of 5 million iPhones annually and employs 10,000 workers

Tata Electronics, established in 2020, has operations across four states and employs over 50,000 people, marking significant expansion in India's electronics manufacturing sector

Tata Electronics has picked up a controlling 60% stake in Pegatron Technology India, strengthening its position in India’s electronics manufacturing space.

This comes less than a year after Tata Electronics’ acquisition of Wistron’s India operations in Narsapura in March 2024.

Pegatron will undergo rebranding to align with its new ownership structure while continuing to deliver electronics manufacturing services.

“The acquisition of a majority stake in Pegatron Technology India fits into Tata Electronics’ strategy of growing our manufacturing footprint. We look forward to a new era of AI, digital, and technology-led manufacturing as we bring up these new facilities and expand our operations in India,” said Randhir Thakur, chief executive and managing director of Tata Electronics.

The deal comes shortly after receiving approval from the Competition Commission of India (CCI) earlier this month. The acquisition will be done in two tranches and includes the transfer of TEL Components’ business undertaking to Pegatron India.

Pegatron India, a subsidiary of Taiwanese company Pegatron Corporation, has been a key electronics manufacturing services provider for global tech giants, with exports spanning North America, Asia, and Europe.

The company currently operates a manufacturing facility in Chennai with an annual production capacity of approximately 5 million iPhones and employs around 10,000 workers.

Established in 2020 as a greenfield venture of the Tata Group, Tata Electronics Private Limited (TEPL), a wholly-owned subsidiary of Tata Sons, specialises in manufacturing high-precision components for large customers.

The company currently employs over 50,000 people and has significant operations in Gujarat, Assam, Tamil Nadu, and Karnataka.

It operates in the electronics manufacturing services sector through Tata Electronics Systems Solutions (formerly Wistron Infocomm Manufacturing India).