Tata Electronics Deepens iPhone Manufacturing With ₹1,500 Cr Funding

The Tata Group has invested an extra ₹1500 crore in its electronics segment and this move has given a massive boost to the iPhone production of Tata Electronics.

This injection helps the group to aggressive expansion strategies in the fast growing electronics market of India, and further strengthens its relationship with Apple with the global supply chains realigning.

Following this round, the Tata Group has invested around ₹4500 crore in Tata Electronics over the last one year. The company is a key contract maker to Apple that assembles iPhones in India to sell them within the country and in huge export markets in the US and Europe. This has reduced Tata Electronics to a major contributor in the strategy by Apple of diversifying its production beyond China.

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The new capital will enable Tata Electronics to increase its production and strengthen its balance sheet. The company also increased its authorized capital to 20,000 crore, which shows that it is willing to invest more capital as the demand increases. In terms of the industry, this move is an indication of growing confidence in the ability of India to achieve large scale and high precision electronics manufacturing.

In addition to smart phones, Tata electronics is committing substantial capital in semiconductors, an area that is considered critical in long term competitiveness. The company is constructing a semiconductor fabrication plant in Gujarat and an assembly and testing facility in Assam in accordance with the goal of India to establish a domestic chip ecosystem.

Despite increasing its revenues, Tata Electronics is still not making any profits due to massive initial investment in technology, infrastructure and talent. However, its losses are reducing, which means it is becoming more efficient in its operations.