Tatas bet big on iPhone, infuse Rs 1,500 crore more in electronics business

Kolkata: The Tatas have invested ₹1,500 crore more in Tata Electronics, which manufactures iPhones on contract for Apple, as per its updated regulatory filing with the Registrar of Companies.

The equity investment in October has taken the total capital infusion by group holding company Tata Sons in Tata Electronics to ₹4,500 crore in the past one year.

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The funding highlights the parent's continued backing for capacity expansion at Tata Electronics, which has emerged as one of the largest iPhone manufacturers for Apple in India. Most of its production is exported to the US and Europe.

The company has also doubled its authorised share capital base to ₹20,000 crore, reveals the filing, indicating the likelihood of more fund infusion from the parent.

Tata Electronics did not mention the reason behind the capital infusion, though in the filing said in order to carry its business it will require "additional long-term finance by issue of securities/equity shares".

A spokesperson told ET that the company will not comment.

Tata Electronics secured the latest funding at ₹62 per share, said Mohit Yadav, founder of business intelligence firm AltInfo. "This will fund capex for electronics manufacturing and semiconductor expansion, with profitability timeline remaining uncertain amid heavy growth investments," he said.

As per its regulatory filings, Tata Electronics posted consolidated operating income of ₹66,206 crore in 2024-25, compared with ₹3,752 crore in 2023-24. It is still loss-making, though the net loss narrowed to ₹69 crore in FY25 from ₹825 crore.

Yadav said despite commanding assets of about ₹48,000 crore and such high consolidated revenue, the net loss in FY25 indicated that capacity expansions and integration costs are still weighing on profitability.

As per Counterpoint Research, more than 70% of iPhones sold in the US are produced in India. Foxconn is the largest producer of iPhones in India.

Apple chief executive Tim Cook said in the company's earnings call in August that a "vast majority" of iPhones sold in the US were from India and most of other products such as Mac, iPad and Watch were from Vietnam.

Apart from production of smartphones for Apple and hi-tech components, Tata Electronics is entering majorly into semiconductors, investing about $14 billion to build a semiconductor fabrication facility in Gujarat and a chip assembly and testing unit in Assam.

Tata Group and chip major Intel had earlier this month signed a memorandum of understanding to explore manufacturing and packaging of Intel products for local markets at Tata Electronics' upcoming facilities, and collaboration for advanced packaging in India. In addition, they intend to explore the opportunity to rapidly scale tailored AI PC solutions for consumer and enterprise markets in India.