Motherson may join Apple supply chain in India with BIEL Crystal, plans Rs 2,500-cr investment: Report

The Motherson Group is on the verge of entering Apple's expanding supply chain network in India alongside Hong Kong-based BIEL Crystal Manufactory, a major global supplier of smartphone glass, reports The Economic Times.

This move positions the Vivek Chaand Sehgal-led auto component manufacturer as the second significant Indian business group, following Tata, to become an Apple vendor. Motherson aims to leverage its core manufacturing expertise to diversify into new sectors.

According to sources, the 51:49 alliance, with Motherson holding the majority stake, plans to establish a greenfield manufacturing facility in southern India, likely Tamil Nadu, with an estimated investment of Rs 2,000-2,500 crore. The venture targets a turnover of Rs 8,000-8,500 crore within four to five years of commencing operations. The consumer electronics business is scheduled to launch in the July-September quarter.

Neither Motherson, Apple, nor BIEL responded to queries. Motherson founder and chairman Vivek Chaand Sehgal cited the silent period before quarterly results as the reason for his non-comment. Moneycontrol could not independently verify the report.

In January, Samvardhana Motherson International Ltd (SMIL) announced that its subsidiary, Samvardhana Motherson Innovative Solutions Ltd (SMISL), had entered into several agreements with BIEL Crystal (Singapore) Pvt Ltd. BIEL was to invest in Motherson Electronic Components Pvt Ltd (MECPL), a wholly owned subsidiary of SMISL. Although both parties signed a definitive agreement, specific details of the joint venture were not disclosed.

The agreement included BIEL’s investment in MECPL through 0.01 percent compulsorily convertible preference shares (CCPS), convertible to 10 percent equity and potentially up to 49 percent on a fully diluted basis. BIEL and its affiliates would also provide technical and technological support to MECPL, with agreed-upon shareholding and management rights.

SMIL could appoint a majority of the directors at MECPL, while BIEL could nominate directors based on its shareholding of up to 49 percent. Any issuance of equity shares or convertible securities to a third party required the consent of both parties.

Founded in 1989 by billionaire Yeung Kin-man in Shenzhen, China, BIEL Crystal Manufactory initially produced watch crystals. It claims to be one of the first manufacturers of glass screens for mobile devices, starting in the early 2000s when screens were predominantly plastic. Estimates suggest BIEL currently produces glass screens for two out of every three iPhones.

Amid rising geopolitical tensions, Apple has been urging its suppliers to diversify production bases to mitigate the risks of over-reliance on mainland China. In addition to India, Southeast Asian countries like Vietnam, Malaysia, Thailand, and the Philippines are looking to benefit from this diversification strategy.