TATA Group खरीदेगा इस Chinese Company को ?
Rep: TATA Group खरीदेगा इस Chinese Company को ? New Delhi: Tata Group is considering acquiring a significant stake in the Indian unit of the Chinese smartphone company, Vivo. Discussions between the two parties have reached an advanced stage, focusing on valuation. Sources reported to Moneycontrol that while Tata Group is interested in the deal, nothing has been finalized yet. Neither Tata Sons nor Vivo India has made any official statement.
Impact of Government Regulations
This news emerges amidst the Indian government’s increased scrutiny on Chinese companies. As a result, Vivo is exploring options to include domestic companies in its manufacturing and distribution operations in India. According to Moneycontrol, amid heightened investigations, Chinese companies like Vivo and Oppo are negotiating with Indian companies for their local units. The Indian government desires that any joint venture with a Chinese handset company should have at least a 51% stake held by an Indian partner. Additionally, the government wants local leadership and distribution in such joint ventures.
Notably, Vivo is under investigation for allegedly avoiding taxes by transferring a significant portion of its revenue to its Chinese parent company. The Enforcement Directorate is also probing the company for alleged violations of the Prevention of Money Laundering Act (PMLA).
Company’s Financial Status
According to the Registrar of Companies (RoC), Vivo India reported a revenue of ₹29,874.90 crore from operations in FY 2023, achieving its second-highest profit of ₹211 crore. In contrast, in FY 2022, the revenue was ₹26,971.11 crore, with the company recording a loss of ₹123 crore.
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Tata’s Bet on Electronics Manufacturing
Tata Group has ventured into the electronics manufacturing sector in India through its subsidiary, Tata Electronics. Last November, Tata Electronics acquired the local operations of Taiwan’s Wistron for $125 million (₹1,000 crore), becoming the first Indian company to manufacture iPhones. The group is now negotiating with Apple contractor Pegatron to acquire a majority stake in its iPhone manufacturing unit near Chennai.
Bhagwati Products Takeover
Meanwhile, Bhagwati Products (Micromax) has taken over Vivo’s manufacturing facility in Greater Noida. The company has started hiring employees and will soon begin producing smartphones for Vivo through its joint venture with Huaquin. This joint venture is awaiting approval from the Indian government. Huaquin Technology is the world’s largest Original Design Manufacturer (ODM) for mobiles, tablets, and laptops.
