Tata Electronics Acquires 60% Stake in Pegatron India
Tata Electronics Private Limited (TEPL) has announced the acquisition of a 60% controlling stake in Pegatron Technology India Private Limited (PTI), marking another significant step in its expansion strategy. This move follows Tata Electronics' acquisition of Wistron’s India operations in March 2024 and aligns with Tata Sons’ Chairman N Chandrasekaran’s vision of bolstering the Tata Group's presence in electronics manufacturing.
Key Details of the Acquisition
Rebranding and Integration
As part of the deal, Pegatron Technology India will undergo rebranding to reflect its new ownership structure and business direction. Tata Electronics and Pegatron India will integrate their teams to ensure seamless operations while continuing to deliver high-quality electronics manufacturing services. This acquisition strengthens Tata Electronics' position as a key player in India's electronics manufacturing sector.
Strategic Expansion
Pegatron India, a subsidiary of Taiwan-based Pegatron Corporation, provides electronics manufacturing services (EMS) to global giants like Apple and exports products to North America, Asia, and Europe. The acquisition aligns with Tata Electronics' strategy to expand its manufacturing footprint and leverage opportunities in AI, digital, and technology-led manufacturing.
Statements from Leadership
Randhir Thakur, CEO & MD of Tata Electronics, stated, "The acquisition of a majority stake in Pegatron Technology India Private Limited 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."
Background and Previous Acquisitions
Tata Electronics, a wholly-owned subsidiary of Tata Sons, has been actively expanding its presence in the electronics manufacturing space. In November 2023, the company acquired Wistron’s iPhone manufacturing unit in Bangalore for $125 million. This latest acquisition further cements Tata Electronics' ambition to become a leading player in the global electronics manufacturing industry.
Future Outlook
With this acquisition, Tata Electronics aims to enhance its capabilities in high-precision component manufacturing and expand its service offerings. The company is also looking to diversify its client base beyond Apple, positioning itself as a formidable competitor to global EMS providers like Foxconn.
Conclusion
Tata Electronics' acquisition of a 60% stake in Pegatron India underscores its commitment to strengthening its position in the electronics manufacturing sector. By integrating Pegatron’s expertise and expanding its operations, Tata Electronics is well-positioned to capitalize on the growing demand for electronics manufacturing services in India and globally.
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