Tata Group eyes majority stake in Vivo India
The Tata Group is reportedly in advanced discussions to acquire a majority stake in Vivo's Indian division. This potential acquisition is a significant move, given the Indian government's recent push for local companies to hold at least a 51% stake in joint ventures with Chinese handset manufacturers. "The discussions have reached an advanced stage where talks began around valuations. Vivo has been seeking a higher valuation than what Tatas are offering," reported Moneycontrol, citing a person privy to the matter.
Tata Group's broader strategy in electronics manufacturing
The Tata Group's interest in Vivo is part of its broader strategy to expand its footprint in the electronics manufacturing sector. Last year, Tata Electronics, a subsidiary of the group, acquired Taiwanese Wistron's local operations for $125 million (about ₹1,000 crore), making it the first Indian company to produce iPhones. The group is also reportedly in talks with another Apple contract manufacturer, Pegatron, to acquire a majority stake in its iPhone manufacturing unit near Chennai.
Tata Electronics's ambitious iPhone assembly plant project
Tata Electronics is currently building one of India's largest iPhone assembly plants in Hosur, Tamil Nadu. The facility is expected to feature about 20 assembly lines and provide employment for roughly 50,000 workers within the next two years. The plant's construction is progressing well, and it is anticipated to be operational within 12 to 18 months. This ambitious project underscores the Tata Group's commitment to expanding its presence in the electronics manufacturing sector.
Bhagwati Products takes over Vivo's Greater Noida factory
In a related development, Bhagwati Products, the parent company of Micromax, has reportedly acquired Vivo's manufacturing facility in Greater Noida. The company is now in the process of recruiting staff and preparing to manufacture smartphones for Vivo through its original design manufacturing (ODM) partnership with Huaqin. However, this plan is subject to government approval. Vivo has already shifted its manufacturing operations to a new 170-acre facility in Greater Noida.
