Tata Group Steps into the Global Value Chain Arena
The Tata Group has made history as the first Indian company to emerge as a global value chain (GVC) player in the $4.3-trillion global electronics market. Through strategic acquisitions, Tata Electronics is poised to redefine India’s role in global manufacturing.
Strategic Acquisitions: Wistron and Pegatron Deals
Tata Electronics recently acquired Wistron’s Karnataka unit and a 60% stake in Pegatron’s iPhone manufacturing plant in Chennai. These moves position Tata as India’s answer to Foxconn, the world’s leading electronics contract manufacturer. Analysts believe this step solidifies Tata Electronics as a critical player in Apple’s supply chain.
Becoming a Contract Manufacturing Powerhouse
Foxconn, Wistron, and Pegatron currently dominate Apple’s manufacturing operations in India. Foxconn alone accounts for 70% of iPhone production, while Wistron and Pegatron share the remaining 30%. Tata Electronics’ entry marks a turning point. Analysts predict that Tata will scale operations to rival Foxconn’s production capacity.
Building a Competitive Workforce
To compete with Foxconn’s scale, Tata Electronics is rapidly increasing its workforce. Industry insiders report that the company aims to reach a workforce of 40,000, equivalent to Foxconn’s. Perks such as dormitories, meals, and transportation are being introduced to attract and retain talent.
Holistic Approach to Electronics Manufacturing
According to Neil Shah, co-founder of Counterpoint Research, Tata Electronics adopts a broader perspective in the Electronics Manufacturing Services (EMS) sector. Unlike competitors, Tata is establishing a semiconductor fabrication facility alongside its existing capabilities for assembling and testing chips. This vertical integration sets Tata apart.
Integration Across the Value Chain
Tata Electronics’ operations extend beyond manufacturing. The company also produces components for iPhones and has ventured into complete device assembly. Through its retail chain, Croma, Tata has a direct channel to sell these devices, further solidifying its position in the value chain.
Expanding Beyond Apple
Pareekh Jain, CEO of EIIRTrend, highlights Tata’s ambition to go beyond Apple. With the group’s diverse portfolio spanning manufacturing, software, hardware, and services, Tata is well-positioned to cater to a broader electronics market. This synergy places Tata Electronics at a unique vantage point in the global market.
India’s Role in Apple’s Global Strategy
India’s prominence in Apple’s global strategy is growing. For the first time, Apple has begun producing Pro and Pro Max iPhone models in the country. Between April and October, Apple’s iPhone exports from India hit ₹60,000 crore, equivalent to $7 billion, underscoring the nation’s rising importance in high-value electronics manufacturing.
Tata’s Vision: Redefining Indian Manufacturing
Tata Electronics is more than a manufacturing giant; it is a symbol of India’s potential in the global electronics ecosystem. With a robust strategy, diverse portfolio, and growing workforce, Tata is on track to not only match but potentially surpass Foxconn’s capabilities in the coming years.
