Pegatron is a Taiwanese contract manufacturer of communication, computing and consumer electronics, and peripherals for branded vendors. The company produces laptops, motherboards, handheld devices, smartphones, gaming consoles, video cards, and LCD TVs, to name a few.
Pegatron was about to roll out its plant for making iPhones last year in India. However, with several of its employees testing positive for Coronavirus, it had to halt production. Now, Pegatron will renew its operations in India.
Apple already has two vendors in India. With Foxconn Hon Hai having a factory in Tamil Nadu and Wistron in Karnataka, Apple managed to export iPhones worth over Rs.10,000 crores in FY22.
India’s export of mobile phones in FY22 rose by 75 pc to $5.5 billion, said India Cellular and Electronics Association. A significant push came from Apple and Samsung vendors. However, homegrown players like Lava and Optimus could not benefit from the PLI scheme despite making the required investments as they failed to meet the production target.
With Pegatron as the third vendor for Apple, operating from Tamil Nadu, the global mobile phone giant would hit a minimum production value of Rs.25,000 Cr in FY23 and a possible maximum of Rs.40,000 Cr.
Foxconn and Wistron have already become eligible for their incentives under the Government’s Production Linked Incentive (PLI) Scheme. However, for Pegatron to become eligible for a six pc incentive under the PLI scheme, it must cross a production value of Rs.8000 Cr by FY23.
Pegatron plans to invest Rs.250 Cr and hire 5700 employees for its factory in Tamil Nadu. To begin with, it will manufacture iPhone 12 and then add iPhone 13 to its production line.