Apple suppliers, Hyundai, others commit to $4.4 bln in electronics, EV push in India
Several multinational electronics and manufacturing companies including Apple’s supplier Pegatron and Korean auto giant Hyundai have committed to large investments in the southern Indian state of Tamil Nadu, but first, a couple of other headlines that caught my attention. The US Federal Aviation Administration on Saturday ordered the grounding and immediate inspection of about 171 Boeing 737 Max 9 aircraft worldwide after a mid-flight emergency late Friday involving a plane operated by Alaska Airlines, NPR reports. The US aviation regulator announced this order after an Alaska Airlines flight was forced to abruptly land in Portland, Oregon after a door plug blew out in midair, leaving a hole in the aircraft next to two unoccupied seats. Unicommerce eSolutions Limited, a software provider to ecommerce companies for transaction processing, has filed its Draft Red Herring Prospectus with India’s capital markets regulator Securities and Exchange Board, seeking an IPO. The proposed listing comprises of an offer for sale aggregating up to about 29.84 million equity shares of face value of Rs. 1. This includes up to 11.46 million shares by Unicommerce’s promoter AceVector Limited (formerly known as Snapdeal Limited), up to about 2.21 million shares by B2 Capital Partners and up to about 16.17 million shares by SB Investment Holdings (UK) Limited. One thing today In one thing today, Apple suppliers Tata Electronics and Pegatron, and automaker Hyundai Motors have signed investment pacts worth more than $4.39 billion with the southern Indian state of Tamil Nadu, Reuters reports, citing a statement from the state government at a global investor summit. Industry analysts estimate India could account for as much as a third of Apple’s iPhone production in the coming years, as the tech giant steps up its efforts to reduce dependence on China. Apple is also looking at India as its next big market, where it has seen quarterly records in sales over the last two years. Pegatron is setting up a second factory in India, Reuters notes, and the Tata Group, which last year began to assemble iPhones, has also purchased a factory on the outskirts of neighbouring Bengaluru from Wistron, another Apple supplier. Tata Electronics has committed to investing Rs. 12,080 crore for mobile phone assembly operations, the state government said during the signing of the agreements, according to Reuters. Taiwan’s Pegatron expects to invest Rs. 1,000 crore to expand production, the government added. South Korean Auto giant Hyundai Motors plans to invest Rs. 6,180 crore, a part of which will go towards electric vehicle battery and car manufacturing. Vietnamese EV maker VinFast is setting up its first manufacturing facility in India and expects to invest up to $2 billion in Tamil Nadu, according to Reuters. The semiconductor giant Qualcomm yesterday, announced what it called a significant expansion in Chennai with a new facility for its design centre, with an investment of about Rs. 177 crore. The Design Centre is expected to generate jobs for up to 1,600 skilled professionals. It will specialize in wireless connectivity solutions, with a focus on innovations that complement Wi-Fi technologies. It will contribute to Qualcomm's global research and development in 5G cellular technology, Qualcomm said in a press release. Separately, Tata Power is exploring investments of up to Rs. 70,000 crore in Tamil Nadu over the next several years, including investments in some existing projects, the company’s chief executive officer Praveer Sinha said at a press briefing at the investors meet, Reuters reports. And JSW Energy has announced plans to invest Rs. 12,000 crore to develop renewable energy projects.