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Apple contract manufacturer Pegatron okays Rs 1,100 crore investment for India unit

Pegatron Corp, the parent company, will put in the funds raised fully through its internal resources as part of its “long-term investment”.

By: ENS Economic Bureau | New Delhi | November 24, 2020 3:12:01 am
The accused then asked the complainant to pay small amounts under the pretext of paying registration fees, getting a medical card, police verification and for booking a room in a hotel. (Representational)

Apple’s contract manufacturer Pegatron Corporation’s board of directors has approved an investment of Rs 1099.8 crore in India through its wholly-owned subsidiary Pegatron Technology India Private, the filings made by the company with the Taiwan Stock Exchange showed.

Pegatron Corp, the parent company, will put in the funds raised fully through its internal resources as part of its “long term investment”, the company said, without elaborating what those plans were. The company is one of three major assembly partners of Apple, along with Foxconn Technology Group and Wistron Corporation.

Its Indian subsidiary, Pegatron Technology India incorporated in July this year, is among the 16 global and Indian mobile handset makers given the government go ahead to in October this year to start manufacturing under the Production Linked Incentive (PLI) scheme.

Apart from the three contract manufacturers of Apple, other global companies such as Samsung and Rising Star have also been given approval for making mobile phones in the Rs 15,000 and above value segment.

The Indian Express had, in July, reported that Samsung, Pegatron, and Rising Star were the first global applicants for the government’s PLI scheme. The Centre had, in April, notified the new PLI scheme, under which companies that set up new mobile and specified equipment manufacturing units or expanded their present units would get incentives of 4-6 per cent on incremental sales from goods made in India.

Among the domestic players, companies such as Lava, Micromax’s parent company Bhagwati Products, Padget Electronics, UTL Neolyncs, and Optiemus Electronics have also been granted approval by the government.

The PLI scheme, open for a total of five years, aims to give out incentives worth Rs 5,334 crore in total in the first year, to be divided among all the successful applicants.

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