Tata Group secures funding of Rs 7,600 crore for electronics business

31 May 2023 , 02:58 PM

Tata Group has collected substantial funding, exceeding Rs 7,600 crore, to support the growth of its newly established electronic component and contract manufacturing business, operated under Tata Electronics.

As revealed in recent regulatory disclosures made by the company, the funds have been secured through a combination of capital injection from the parent company and secured loans.

Tata Electronics, according to filings with the Registrar of Companies (RoC), received a capital infusion of over Rs 608 crore in the fiscal year 2022-23 from its parent company Tata Sons.

This marks the highest capital infusion in a single financial year, bringing the total capital injection to Rs 1,820 crore over the past three years since its inception. The authorized capital of Tata Electronics stands at Rs 2,000 crore.

According to the filings, the company has raised secured loans totaling Rs 5,799 crore.

Tata Electronics, the newest endeavor of the Tata Group in the field of electronic component manufacturing, is rapidly expanding its operations to compete head-on with industry giants like Foxconn and Dixon.

In a recent development, the group is rumored to be in the final stages of acquiring the iPhone manufacturing plant in Karnataka, near Bengaluru, previously owned by Taiwanese contract manufacturer Wistron. This move highlights Tata Electronics’ ambitious pursuit of growth and market dominance in the electronics manufacturing sector.

The said acquisition will be completed by Tata Electronics, which is simultaneously building a mobile phone component manufacturing unit located in Tamil Nadu. It involves an investment of Rs 4,600 crore.

If the Winston deal goes through, Tatas would be the first home-grown entity to carry out Apple’s iPhone assembly in India.

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