Tata Group is close to securing a deal with Pegatron Corp. to oversee the iPhone production operations in India starting in May. This move solidifies Apple Inc.’s ties with one of the most prominent business conglomerates in the country. Negotiations between Tata Group and Pegatron are nearing completion, where Tata will hold a majority stake in Pegatron’s Apple handset assembly facilities in India, including an existing plant near Chennai, Tamil Nadu, and another facility currently being constructed. Post-acquisition, Pegatron is set to provide manufacturing expertise to Tata as part of the agreement.

Upon finalization of the deal, it is reported that Tata Electronics Ltd. will manage Pegatron’s operations going forward. Although representatives from both Tata and Pegatron have refrained from commenting on this matter when approached for statements.

With Apple concentrating on expanding its production in India with financial assistance provided by Prime Minister Narendra Modi’s administration, this potential partnership falls within those efforts. Under Modi’s leadership and seeking re-election for a third term, his government has extended incentives such as production-linked subsidies to encourage major Apple suppliers like Foxconn Technology Group and now possibly Pegatron to increase manufacturing activities within India rather than depending solely on China for production due to geopolitical concerns.

Tata Group initially ventured into iPhone assembly by acquiring an iPhone plant from Wistron Corp., based out of Karnataka state neighboring Tamil Nadu where they are now negotiating with Pegatron. Furthermore,Tata aims to further strengthen its collaboration with Apple by constructing a new factory dedicated solely to iPhone production.