Pegatron increase share capital paves way for investment in India plant

Apple’s supplier Pegatron Corp, which kickstarted India operations in September last year, has increased the Indian unit’s authorised share capital to Rs 1100 crore, paving the path for investment in its manufacturing operations.

The members of the India subsidiary have consented to increase the share capital from Rs 5.5 crore to Rs 1100 crore on December 21, 2020, according to the latest regulatory filings accessed by business intelligence platform Tofler.

ET had reported in November that the Taiwanese company’s board has approved an initial investment of $150 million (Rs 1100 crore) for building manufacturing facilities in India.

As per various reports, Pegatron has selected a construction site in Mahindra World City near Chennai, although State government officials say nothing has been finalised yet.

The company didn’t immediately respond to ET’s emailed queries.

Pegatron’s factory in India is expected to start production in the second half of next year or in early 2022 and the company plans to make more investments in India over the next two years, CEO Liao Syh-jang had said in an investor conference in November.

The Taipei-headquartered company, along with other Apple suppliers Wistron and Foxconn, has been okayed by the central government to receive sops under the production-linked incentive scheme.

Under the scheme, Apple will locally produce devices worth around $50 billion over five years, a bulk of which will be for exports, according to government data.

Both Wistorn and Pegatron, though, are currently on probation for violating Apple’s supplier code of conduct, which has already delayed Apple’s plans to start manufacturing its latest flagship, the iPhone 12 series in India. Asean Breaking News