Tata Electronics has increased its authorized equity capital to ₹10,000 crore for FY24, suggesting it might inject over ₹6,000 crore more into the company. Currently, the company’s paid-up capital stands at ₹3,961 crore.
In 2023-24, Tata Sons invested ₹2,140 crore into Tata Electronics, the highest single-year investment since the company was founded in 2020, according to the latest filings with the Registrar of Companies (RoC). The reason for this fundraising hasn’t been specified. The filings also reveal that Tata Electronics had secured loans of ₹6,311 crore by March 2024.
Tata Electronics, the group’s latest venture into electronics manufacturing, is the only domestic manufacturer of Apple’s iPhones after acquiring Wistron’s manufacturing facilities. In February, the company announced plans to invest ₹91,000 crore in a major semiconductor fabrication plant in Gujarat, in partnership with PSMC, and another ₹27,000 crore in a new semiconductor assembly and test facility in Assam.
“With its current equity capital of ₹3,900 crore and the rest in debt, Tata Electronics is set for major expansion. Their planned ₹91,000 crore chip plant investment far exceeds their current resources, indicating a need for significant future fundraising,” said Mohit Yadav, founder of AltInfo, a business intelligence firm.
An email sent to Tata Group for comment was not answered by the time of publication. The authorized capital of Tata Electronics was ₹2,000 crore a year ago. Analysts suggest that part of the company’s secured loan might have been repaid. In 2022-23, Tata Electronics reported ₹463 crore in revenue from manufacturing mobile phone parts and a net loss of ₹531 crore. Financial results for FY24 are not yet available.
Tata Electronics competes with companies like Dixon, Foxconn, and Pegatron in electronics manufacturing. The company’s two major semiconductor projects are expected to create around 47,000 jobs, both directly and indirectly. By 2030, the global semiconductor industry is projected to reach $1 trillion, with India’s semiconductor demand expected to surpass $110 billion. Tata’s entry into semiconductor manufacturing is expected to strengthen India’s role in the global semiconductor industry and help stabilize global supply chains.
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