Tata Electronics is a fairly new player in the electronics manufacturing services space but is growing slowly and steadily. It has produced mobile parts worth Rs 493 crore in the last fiscal year. The numbers were mentioned in the company’s filings with the Registrar of Companies (RoC) and first reported by ET Telecom.
It is specifically producing mobile enclosures at its manufacturing plant. The report says, “Mobile enclosure is the outer mechanical part in which electronics and various modules of the mobile phone are housed.”
The company mentioned that a significant portion of the technologies used for the production are new to India. It further added that it has also built indigenous capability around these technologies. This is good to hear from a company that started local manufacturing in India just a year ago.
As mentioned in the beginning, Tata Electronics is fairly new in the electronics manufacturing services space. It is a market dominated by the likes of Foxconn and Dixon that have decades of experience. The company is a greenfield venture of the Tata Group with expertise in manufacturing precision components. Its manufacturing facility is situated in Krishnagiri district of Tamil Nadu.
The company is working extensively towards the manufacturing capacity expansion of its plant. The total cost of this expansion is estimated to be around Rs 3,400 crore. It was recently reported to raise more than Rs 300 crore for the expansion through a term loan. The expansion is expected to be completed in the current fiscal year i.e. FY24.
Tata Group is also closing in on its acquisition of Wistron’s manufacturing facility in Karnataka. It is one of the assembly plants used by Apple for Made in India iPhone production. There are said to be more than 10,000 workers at the plant responsible for the manufacturing. The two parties are said to be in negotiations for about a year and are now closer than ever to finalizing the deal. In terms of financial aspects, the acquisition deal is expected to cost more than USD 600 million to Tata Group.
While Wistron’s facility in Karnataka focused only on iPhone production, reports suggest we could also see new Apple products getting produced at the plant. It was recently reported Apple is considering producing AirPods locally in India. It is said to have chosen Foxconn’s Hyderabad plant for the production. The manufacturer has approved an investment of USD 400 million and is expected to begin production in December 2024. However, it is unknown if it will produce AirPods, AirPods Pro, or both models.
