TATA Group is reportedly nearing a significant deal with Pegatron to acquire a majority stake in the Taiwanese firm's iPhone manufacturing operations in India.

According to a Bloomberg report, negotiations are in the final stages, with an agreement expected to be reached as soon as May. The deal would solidify Apple’s ties with TATA Group. The proposed transaction would involve TATA Group taking control of Pegatron's Apple handset assembly operations, which include an existing production plant near Chennai, as well as another facility currently under construction.

Following the completion of the deal, TATA Electronics is slated to oversee Pegatron's operations, leveraging the Taiwanese company's manufacturing expertise.

Reports earlier this month by Reuters shed light on the ongoing talks between the two entities, indicating a potential collaboration on the horizon.

The move comes amid Apple's concerted efforts to ramp up production in India, supported by incentives offered by Prime Minister Narendra Modi's government to attract foreign investment and bolster domestic manufacturing capabilities. The current administration has extended production-linked subsidies to key Apple suppliers, including Pegatron, incentivising them to expand their operations in the country.

TATA Group's foray into iPhone assembly began with the acquisition of an iPhone factory from Taiwan's Wistron Corp. in the neighbouring state of Karnataka. The conglomerate has also outlined plans to construct a new iPhone production plant, underscoring its commitment to strengthening its partnership with Apple and enhancing its presence in the smartphone manufacturing landscape.

(With Agency Inputs)