INSUBCONTINENT EXCLUSIVE:
In January, Samvardhana Motherson International Ltd (SMIL) announced that its subsidiary, Samvardhana Motherson Innovative Solutions Ltd
(SMISL), was entering agreements with BIEL Crystal (Singapore) Pvt Ltd3 min read Last Updated : Aug 06 2024 | 10:26 AM ISTMotherson Group
is set to join the Apple supply chain network in India, in partnership with Hong Kong-based BIEL Crystal Manufactory, a leading global
supplier of smartphone glass, The Economic Times reported.
The move will position the Vivek Chaand Sehgal-led auto component manufacturer
as the second major business group, following Tata, to become an Apple vendor
where the Indian firm will hold a 51 per cent majority stake, plans to build a new manufacturing facility in southern India, potentially in
The projected investment for this greenfield project ranges between Rs 2,000 crore and 2,500 crore, with an expected revenue of Rs 8,000 to
8,500 crore within four to five years of operation
The company also provides components for various devices, including smartphones, tablets, and wearables, to major brands such as Samsung,
Xiaomi, and Lenovo.
Strategic investment partnership
In January, Samvardhana Motherson International Ltd (SMIL) announced that its
subsidiary, Samvardhana Motherson Innovative Solutions Ltd (SMISL), was entering agreements with BIEL Crystal (Singapore) Private Limited
BIEL was set to invest in Motherson Electronic Components Pvt Ltd (MECPL), a wholly owned SMISL subsidiary, though joint venture details
were not disclosed.
The deal involved BIEL investing in MECPL through 0.01 per cent compulsorily convertible preference shares (CCPS),
convertible into 10 per cent equity and up to 49 per cent on a fully diluted basis
BIEL would also provide technical support, while SIML would appoint most directors at MECPL, and BIEL could nominate directors proportional
bases
Amid increasing geopolitical tensions, Apple has recently encouraged its suppliers to broaden their production locations to mitigate
the risks associated with heavy reliance on mainland China
In addition to India, Southeast Asian nations such as Vietnam, Malaysia, Thailand, and the Philippines are seeking to benefit from this
diversification strategy.
Fuelled by a rise in Apple iPhone exports from India, electronics have surpassed gems and jewellery to become
the third largest export from India by the end of the June quarter, moving up from fourth place the previous year
The Tata Group alone has invested over $1 billion in new projects and acquisitions to strengthen its partnership with Apple, the report
said.
According to a senior executive, Corning, the manufacturer of Gorilla Glass and a major supplier for Apple, is set to start
production at its Tamil Nadu facility in the latter half of 2025.First Published: Aug 06 2024 | 10:26 AMIST
