Tata-Run’s iPhone factory would be a boon to India, says executive
Tata Group’s success in its bid to buy an iPhone assembly plant in southern India would give a boost to the country’s ambitions to become an electronics manufacturing hub, a senior executive at the conglomerate’s software services arm.
“I am not directly involved in this but it should be really good for India as it will create an opportunity in India to manufacture electronics and microelectronics,” said N Ganapathy Subramaniam, Chief Operating Officer at Tata Consultancy Services Ltd., at Bloomberg TV. Rishaad Salamat and Haslinda Amin in an interview on Tuesday.
The $128 billion (roughly Rs 10.50) Tata Group has been in talks for months with Apple’s Taiwanese supplier Wistron and is seeking to seal the purchase of its assembly plant near Bangalore from Apple. here at the end of March. The salt-to-airline conglomerate has expanded its presence in technology, and the Indian government has moved to challenge China’s dominance in electronics.
Subramaniam and Tata Group Chairman Natarajan Chandrasekaran are brothers and hail from the southern Indian state of Tamil Nadu.
Shares of TCS fell 2.7% on Tuesday after the company reported net profit of 108.5 billion rupees ($1.3 billion) in the three months to December, missing the estimate analyst average of 110.85 billion rupees.
“It’s a very, very broad and mixed environment, but given what we’ve achieved as momentum and the qualified pipeline that I see, I think it’s all good,” Subramaniam said.
The IT company on Monday announced a special dividend of 67 rupees per share, a move in line with its capital allocation policy, Subramaniam said.
TCS, Asia’s largest contractor, has enough cash to consider mergers and acquisitions and other strategic opportunities in areas such as cybersecurity and cloud solutions, he said.
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