Tata group's bid for Vivo India stake runs into Apple hurdle: Report

Vivo, which reported a revenue of Rs 30,000 crore for FY23, was seeking to offload a 51% stake in its Indian subsidiary to the Tata Group.

Tata group’s plan to acquire a majority stake in Vivo India operations seem to have run into trouble with Apple raising concerns about the possible deal, the Times of India has reported.

The Chinese smartphone maker was looking to offload a 51 percent stake in its Indian subsidiary to the Tata group as part of the strategy to align with the government’s “Indianisation” push, the report said.

Apple, however, objected to the deal as Tata manufacture its devices in Bengaluru, the report said.

Moneycontrol could not verify the report independently.

For the American company, a partnership between Tata and Vivo would have amounted to the Indian group aligning with a competitor, sources said. The concern was a major factor in the breakdown of negotiations. A re-evaluation of the deal looked unlikely, they added.

Both Apple and Vivo did not respond to TOI's queries, while a Tata Group spokesperson denied the development.

Chinese firms are increasingly seeking local partners to ease funding challenges and comply with the government’s scrutiny of foreign investments.

Partnerships with credible local entities also bolster their standing under the Make in India initiative.

The Tata Group has been on a growth trajectory in the electronics sector, exemplified by its recent acquisition of Taiwanese manufacturer Wistron’s factories.

The move not only allowed Tata to enter the global supply chain for Apple but also provided a significant boost to its electronics manufacturing capabilities.

Chinese firms, too, are seeking local tie-ups. The SAIC Group, owner of MG Motor, is transferring majority control to Sajjan Jindal’s JSW Group, while Dixon Electronics, led by Sunil Vachani, has secured a 56 percent stake in Ismartu India, a subsidiary of Chinese Transsion Technology.