Tata Group’s Bid for Vivo India Stake Hits Roadblock Amid Apple Objections
Tata Group‘s attempt to acquire a majority stake in Vivo’s Indian business may have encountered a setback due to objections from Apple, according to sources cited by TOI.
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Vivo, which reported revenues of Rs 30,000 crore for FY23, was looking to sell a 51% stake in its Indian subsidiary to Tata Group as part of its strategy to “Indianize” its operations in response to government pressure. However, the deal has faced complications because Apple’s devices are manufactured by Tata Group in Bangalore. Sources indicate that Apple’s discomfort with Tata Group’s potential partnership with Vivo—an indirect competitor—was a significant factor in the stalled negotiations.
Tata Group
“For Apple, any deal between Tata Group and Vivo would represent a partnership with a competitor, which likely led to the breakdown in talks,” the source said, adding that a resolution seems unlikely “as of now.”
Attempts to reach Apple and Vivo for comments were unsuccessful, and a Tata Group spokesperson denied the development.
Chinese companies have been seeking local partners in India to secure easier funding and gain credibility with the government’s Make in India initiative. This strategy also helps them navigate increased scrutiny on investments from countries with which India shares a land border. Recent examples include China’s SAIC Group, which is selling a majority stake in MG Motor to Sajjan Jindal’s JSW Group, and Sunil Vachani-led Dixon Electronics, which acquired a 56% stake in Ismartu India, a subsidiary of Chinese Transsion Technology.
Tata Group’s expansion in the electronics sector has been marked by its acquisition of Wistron’s manufacturing operations, which allowed it to enter Apple’s key supplier network. This partnership has enabled Tata to produce iPhones for both the Indian and global markets, enhancing its standing among global electronics manufacturers and gaining access to a lucrative market previously dominated by Taiwanese firms like Foxconn, Pegatron, and Wistron.
