Tata Group's Acquisition Of Stake In Vivo India Hits Roadblock

Tata's aims to acquire a majority stake of 51 per cent in Vivo India, has hit a roadblock in the wake of iPhone maker Apple's objections.

This comes at a time when Vivo has just celebrated its 10th anniversary in the country.

Source : Tata/X

Tata Group, India's biggest conglomerate, which has been making strides to enhance its presence in the electronics sector and was mulling to acquire handset maker Vivo's assets in India. However, Tata's aims to acquire a majority stake of 51 per cent in Vivo India, has hit a roadblock in the wake of iPhone maker Apple's objections, the media has reported.

Apple's Opposition To Tata Group's Acquisition

The situation is complicated by Tata Group's existing manufacturing agreement with Apple, following its acquisition of Wistron India's facility in Bengaluru. A partnership with Vivo, a competitor in the smartphone market, could potentially create conflicts of interest and impact Tata's relationship with Apple, says a report by Times of India (TOI).

Vivo's New Plant In North India

This comes at a time when Vivo has just celebrated its 10th anniversary in the country by announcing the opening of a new plant in northern India. Vivo has announced plans to inaugurate a new manufacturing facility in Greater Noida. This plant is expected to commence operations by the close of 2024. The strategic expansion is set to have a substantial impact on Vivo's production capabilities in India, effectively doubling its current manufacturing capacity.

This development also highlights the complex dynamics at play in India's ever-evolving electronics and smartphone industry, where strategic partnerships and competitive considerations often intersect.

The acquisition plan underscored the growing importance of local partnerships and involvement of domestic players in India's tech sector, as well as the Tata Group's ambitions to expand its presence in the electronics industry.

Earlier last month, a MoneyControl report said that Tata Group is reportedly engaged in negotiations to purchase a controlling interest in Vivo's Indian subsidiary. This deal came in the wake of the Chinese smartphone manufacturer's efforts to forge partnerships with local entities in India. These efforts were largely in response to the Indian government's initiatives encouraging foreign companies to involve domestic firms in various aspects of their operations, from production to distribution channels.