Tata Firm Buys Justech India Unit for $100M, Sources Say

• Tata Group’s Titan Engineering acquires Justech Precision India for $100M
• Tata now operates three iPhone assembly plants in southern India
• Apple is shifting production to India amid China-related risks

Tata Group firm, Titan Engineering and Automation acquired the Indian subsidiary of Chinese industrial company Justech Precision for approximately $100 million deal. This is part of the conglomerate's strategy to expand its manufacturing capacity to take advantage of Apple's increase in iPhone production in India.

The transaction, finalized in August, had advisory services from both HSBC Bank and HDFC Bank. Tata Group acquires iPhone supplier Justech’s India unit in a $100 million deal, strengthening its electronics manufacturing presence through M&A in the tech industry.

Justech Precision, based in Kunshan, China, has been an Apple supplier since 2008 and provided industrial equipment, such as CNC machines, to Foxconn, Apple's largest assembler. Justech's India subsidiary was established in 2019 and is located in Tamil Nadu and will now be under Titan Engineering. Both companies chose not to make public statements about the acquisition.

This follows Tata Electronics' prior disclosure of its acquiring a 60% share in Pegatron's Indian holdings, a Taiwan-based contract manufacturer, which features an iPhone plant, too, as well as Tata Group is now a significant assembler of iPhones in three installations in southern India. Apple wants to source all of its iPhones for the U.S. markets from India by the end of 2026.

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Apple is shifting to India due to the risks associated with China. There have been uncertainties regarding pandemic restrictions, tensions between the U.S. and China, and export tariffs. While Foxconn still manages most of the iPhones shipped from India -nearly two-thirds of the shipments.

Tata produces the last third, and it is likely to increase further as its operations expand, especially being that Tata now has two plants in Tamil Nadu and one in Karnataka, which was formerly owned by Wistron.

Apple is facing challenges along the way, including a labor dispute at a Bengaluru facility. Consequently, the company is trying to develop very local supply chains in India.

Experts noted that the transition to a more robust, local supplier ecosystem similar to what they have in China will take years. According to Counterpoint Research, India will account for 26% of global iPhone shipments within the next two years, up from 20% at the beginning of the year.

These acquisitions show Tata Group emerging as a collaborator, aligning with India’s goal of becoming a global hub for smartphone manufacturing as promoted under Prime Minister Narendra Modi.