Tata Group has made an additional investment of Rs 1,500 crore in Tata Electronics. With this, the total investment in the last one year has reached Rs 4,500 crore. This investment will help in manufacturing iPhone and expansion of important semiconductor projects. Tata Electronics is preparing to set up new factories and assembly units in Gujarat and Assam.
According to the latest information submitted with the Registrar of Companies, Tata has invested another Rs 1,500 crore in Tata Electronics. Tata Electronics manufactures iPhones on contract for Apple. With this equity investment made in October, the group’s holding company Tata Sons has invested a total of Rs 4,500 crore in Tata Electronics in the last one year. This funding reflects the parent company’s continued support to expand Tata Electronics’ production capacity. Tata Electronics has now become one of the largest companies making iPhones for Apple in India. Most of its production is sent to America and Europe.
Expected to invest further
The filing also shows that the company has doubled its authorized share capital to Rs 20,000 crore. This indicates that more funds may be received from the parent company in future also. Tata Electronics has not clearly explained the reason behind the investment. However, the filing states that to run the business, the company needs additional funds for the long term by issuing equity shares. A company spokesperson told ET that it would not comment on the matter.
Mohit Yadav, founder of business data firm AltInfo, said that Tata Electronics has raised this latest funding at a price of Rs 62 per share. He said that this money will be used for big investment (capex) for electronics manufacturing and semiconductor expansion. However, it is not yet clear when the company will turn profitable amid the rapid investment. According to regulatory filings, Tata Electronics recorded a total operating income of Rs 66,206 crore in 2024-25, while in 2023-24 it was Rs 3,752 crore. The company is still in loss, but its net loss has come down from Rs 825 crore to Rs 69 crore in FY25.
Tata Group deal
Earlier this month, Tata Group and major chip manufacturing company Intel have signed an agreement. Under this, possibilities of working together on manufacturing, packaging and advanced packaging of Intel products for the Indian market will be explored in the upcoming factories of Tata Electronics. Additionally, both companies will also explore opportunities to rapidly scale up customized AI PC solutions for the consumer and enterprise markets in India.
