Tata Electronics Private Ltd (TEPL) aims to significantly boost its operations with a total investment of $10 billion by 2027, positioning itself as a key player in the global supply chain for precision components. As part of this initiative, the company is allocating Rs 7,000 crore for the expansion of its Hosur plant, with the goal of enhancing iPhone assembly. Located in Hosur, Tamil Nadu, the facility currently houses a casings unit and employs approximately 10,000 female workers.

In November of the previous year, Tata Group entered into a definitive share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong Limited to acquire the entire equity stake of Wistron Infocomm Manufacturing (India) for $125 million. Wistron India, located in the Kolar district of Karnataka, operates four assembly lines for iPhone production at its Malur plant, providing employment to 14,000-15,000 individuals. The acquisition of Wistron’s unit positions Tata to engage in comprehensive end-to-end assembly of iPhones within India.

Tata Electronics is the first Indian company to become a contract manufacturer for iPhones, apart from Taiwan’s Foxconn, Pegatron and Wistron, especially when Apple looks to diversify its manufacturing away from China. The holding company of Tata Group, Tata Sons plans to invest $90 billion by 2027 and most of it is expected to go to new businesses because every traditional business can fund its growth. “We want to be future-ready and create future businesses with strong balance sheets in the next five years. We want to see what impact we can make on society. A lot of things we can do in scale”, said N Chandrasekaran, chairman, Tata Sons.

Annually, the group allocates approximately $1.5 lakh crore as part of its expansion strategy. Over the five years leading up to FY22, Tata Sons, the holding company, has invested Rs 110,000 crore in various group entities. Company officials suggest that the portion of capital investments directed towards new high-tech ventures may increase from a quarter to half of the total investment by 2027. A joint investment of Rs 20,000 crore from Tata and Airbus is earmarked for a defense aircraft manufacturing plant. Air India could receive investments exceeding $20 billion for the procurement of new aircraft. Additionally, Tata Electronics, specializing in semiconductors and precision components, is expected to witness investments surpassing $10 billion. Tata Digital, the proprietor of the SuperApp Tata Neu, is also receiving financial support from Tata Sons to facilitate the expansion of its e-commerce operations. In 5G equipment, semiconductors and EV battery manufacturing also, Tata Group looks to become part of global supply chains. “Our aspiration is not only for supplying to our companies or the country but for the global market”, said Chandrasekaran.