Pegatron to set up manufacturing unit in Chennai

Apple supplier Pegatron to set up its first India manufacturing unit in Chennai

The company will invest Rs 1,100 crore to manufacture or assemble high-end Apple iPhones at the new unit. Credit: Reuters.

Taiwanese electronics major Pegatron Corporation, one of the largest contract manufacturers of Apple Inc, has chosen an industrial park just outside Chennai for establishing its first production unit in India.

The company will invest Rs 1,100 crore to manufacture or assemble high-end Apple iPhones at the new unit, which is likely to begin production by the end of this year or early next year.

After being in talks with various states, including Karnataka, Pegatron Corporation finalised Chennai as the location for its manufacturing unit. Top government sources told DH that the production unit will come up at Casa Grande Industrial Park in Perungalathur on the outskirts of this metropolis.

The Tamil Nadu Cabinet had last week approved a special package and incentives for Pegatron Technology India Private Limited. The new plant is expected to provide employment to 14,079 persons and the company plans to increase its investment in the coming years.

DH had reported on December 25 that Pegatron is likely to choose Tamil Nadu for setting up its first production unit in India.

“Pegatron has already leased space at the Casa Grande Industrial Park for its production unit. A formal Memorandum of Understanding (MoU) will be signed between the Tamil Nadu government and Pegatron Technology India Private Limited in the next few weeks,” a top government source said.

The source added that the state government was “extending all help” to Pegatron Corporation for launching production at the new unit by the end of this year.

Pegatron is the second contract manufacturer for Apple after Foxconn to enter Tamil Nadu. With another contract manufacturer Wistron also functioning from Bengaluru, South India is set to emerge as the hub for manufacturing of Apple iPhones in the country. Foxconn has also pledged an investment of Rs 7,000 crore to expand its facilities to assemble Apple iPhones in Chennai.

Pegatron setting up its manufacturing unit in Chennai comes as a boost to Tamil Nadu, which aims to contribute 25 per cent of India’s total electronic exports to the world and increase the industry's output to USD 100 billion by 2025.

Already home to top 16 electronics manufacturers, including Nokia, Samsung, Flex, Dell, Motorola, Salcomp, HP, and Foxconn, the state is now aiming to contribute 25 per cent of India’s total electronic exports to the world by 2025. India's electronic exports stood at USD 11.28 billion in 2019-20. At present, Tamil Nadu is the second largest manufacturing hub in the country and accounts for 16 per cent of national production of electronics and hardware.