India-based iPhone case maker reported larger losses

Tata Electronics, the subsidiary of Tata Group engaged in iPhone case manufacturing, generated revenues from mobile phone parts manufacturing but incurred huge losses.

The Economic Times, citing Tata Electronics' regulatory filing, reported that the company produced mobile phone parts worth INR4.63 billion (US$55.81 million) and reported a net loss of INR5.31 billion in fiscal 2023. Tata Electronics is making mobile phone enclosures for smartphones, including iPhones.

Tata Group incorporated Tata Electronics in April 2020, looking to engage the group in India's emerging electronics manufacturing industry. Tata Electronics commissioned its first phase of the manufacturing facility in Hosur, Tamil Nadu in December 2022, which is undergoing the second phase of expansion, expected to be completed by March 2024.

According to India Ratings & Research, Tata Electronics generated INR3 million in revenue in fiscal 2022, and the greenfield venture of Tata Group posted larger losses in fiscal 2023 than a year ago during its expansion.

Mohit Yadav, founder of AltInfo, told The Economic Times that Tata Electronics is in its nascent stage, experiencing rapid growth while contending with fixed overheads such as employee salaries and asset depreciation, impacting its bottom line.

According to Business Standard, Tata Electronics plans to raise INR5 billion in loans for its electronics manufacturing business expansion. The Economic Times earlier reported that Tata Group had lined up funds of more than INR76 billion in equity and loans for Tata Electronics.

Apple just launched its latest iPhone 15 series on September 12, with made-in-India iPhones to be shipped simultaneously as Chinese-made iPhones. Multiple Indian reports said that Tata and Taiwan-based Wistron are in advanced talks for the group to acquire Wistron's iPhone manufacturing plant.

Source: India Ratings & Research, The Economic Times, September 2023