Tata Electronics, on an expansion spree, is aggressively hiring senior talent, particularly from Intel. Former Intel executives like Reda Masarwa and Randhir Thakur (now Tata Electronics CEO) are leading this charge. The company aims to build a strong team for its ambitious projects, including new factories and semiconductor manufacturing facilities.
Tata Electronics has held talks with Xiaomi and Oppo to take up contract manufacturing of their smartphones, in a bid to diversify its client base beyond Apple. The company was also in talks with Vivo, but that partnership is unlikely to go through, sources told ET.
The Competition Commission of India approved Tata Electronics' acquisition of a majority stake in Pegatron Technology India. Tata Electronics will also transfer TEL Components' business to Pegatron India. Pegatron India provides electronics manufacturing services for smartphones, including Apple's. Tata Electronics had previously acquired the iPhone unit of Wistron in Bangalore for USD 125 million in November 2023.
Tata Sons has instructed its group companies to manage their own debts without relying on cross-default clauses or letters of comfort. Future funding for new ventures will come from equity investments and internal accruals. Banks are confident in extending credit due to the financial stability and equity stakes held by Tata Sons in these companies.
Tata Sons Chairman N Chandrasekaran has urged leaders of Tata Group companies to pursue growth aggressively. Despite economic uncertainties, he emphasized bold ambitions and seizing opportunities. Key companies have shown mixed results, but focus remains on future growth and resilience. Major investments are being directed towards Air India, Tata Electronics, and Tata Digital.
Apple could look to China for iPhone enclosures if Tata Electronics' Hosur plant, damaged by fire, is not functional soon. Industry experts believe it may reopen in weeks. The plant is crucial for upcoming festive season sales. Apple's manufacturers have enough inventory for now but may temporarily source smaller components locally.
A fire at Tata Electronics' plant in Hosur, Tamil Nadu, halted Apple iPhone production. The blaze, described as chemical-related, caused a building collapse but no casualties were reported. Authorities are investigating the cause while ensuring employee safety. Production remains suspended as fire-fighting efforts continue.
"Some categories like grocery have underperformed and we are making course corrections. If a high-frequency category like grocery doesn’t grow, it’s hard for other categories to compensate because grocery is a high-volume category. "We were a bit late in recognizing the rise of quick commerce, but we are now fully engaged in that space," Tata Sons chairman N Chandrasekaran said.
Apple's Indian workforce will comprise 200,000 direct jobs being created by March-end with women making up a dominant 70%, according to estimates and data submitted by the company as well as its suppliers to the government.
The only Indian manufacturer of Apple's iPhones did not attribute any reason behind the fundraising. The filings show it had secured loans of Rs 6,311 crore as of March 2024.
Chandrasekaran will take over from Banmali Agrawala who has held the post for the last few years. Chandrasekaran who is already chairman of many key Tata group companies will take charge after requisite regulatory approvals. Agrawala, a key Tata Sons aide, has taken on an advisory role recently in the group.
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