OCTOBER 20258TATA BUYS JUSTECH INDIA FOR $100M TO BOOST IPHONE OUTPUTINDIA UNVEILS 69,275 CR PLAN TO BOOST SHIPBUILDING SECTORIn an effort to enhance the maritime industry, the Centre has announced a package of 69,275 crore to promote and expedite India's shipbuilding sector, which is an important step towards achieving Maritime India Vision 2030 & Viksit Bharat 2047.The initiative is expected to enable large-scale employment, attract foreign direct investment in shipbuilding and enhance the strategic and industrial capability of India. The Shipbuilding Financial Assistance Scheme, at the heart of the initiative, has an outlay of 24,736 crore.It will result in providing financial assistance, ship-breaking credit notes, and domestic manufacturing Justech Precision, headquartered in Kunshan, Jiangsu province, has been a long-standing supplier to Apple since 2008. The company supplies advanced industrial machinery, including computer numerical control (CNC) systems utilized for precise cutting and fabrication, to major Apple suppliers such as Foxconn.The Indian branch of Justech, known as Justech Precision Industry India Pvt Ltd, was established in 2019 in Tamil Nadu. Tata Electronics has been increasing its involvement in Apple's supply chain. Earlier in January, the company acquired a 60 percent stake in Pegatron's Indian unit, which operates an iPhone assembly facility, as reported by news agency Reuters.Tata commenced iPhone assembly in 2023 and is anticipated to play a significant role as Apple reportedly plans to transfer all US-bound iPhone production to India by 2026. At present, Apple continues to manufacture the majority of its smartphones in China; however, escalating geopolitical tensions, increased tariffs, and supply chain disruptions have hastened its efforts to diversify.Neil Shah, co-founder of Counterpoint Research, informed CNBC that Apple's primary assembler, Foxconn, currently represents approximately two-thirds of India's iPhone shipments, while Tata Electronics manages the remaining one-third. under the National Shipbuilding Mission. Similarly, the Maritime Development Fund with a value of 25,000 crore will incentivize and support investments while also driving down interest costs and the Shipbuilding Development Scheme with 19,989 crore would assist with capital requirements, risk sharing, and building capacity to create emerging shipbuilding clusters.In addition, to encourage domestic production, the government has announced infrastructure status for large vessels, allowing for easier debt financing and investments in the sector. Experts in the industry describe this as a major improvement for India's maritime ecosystem and anticipate that India will become one of the top five shipbuilding countries in the world by 2047.Major public and private actors are already at the forefront. Cochin Shipyard and Mazagon Dock have signed MoUs with Tamil Nadu agencies for large shipbuilding complexes, including a 15,000 crore facility that will be able to deliver one million GT a year. Cochin Shipyard will partner with HD Korea Shipbuilding to build large commercial ships in stages, backed by a 3,700 crore fabrication unit in Kochi, generating thousands of jobs and strengthening MSME-connected supply chains. TOP STORIESTata Electronics has acquired the Indian operations of the Chinese industrial firm Justech Precision for nearly $100 million.This acquisition is intended to enhance Tata's manufacturing capabilities as Apple intensifies its focus on assembling iPhones in India. The deal was finalized in August, with HSBC Bank and HDFC Bank serving as advisors.
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