Tata Electronics has made a significant move to enter Apple’s supplier ecosystem by buying the Indian operations of the Chinese firm Justech Precision for a little under US $100 million. It is reported that the deal was struck in August, with HSBC Bank and HDFC Bank acting as financial consultants.
Justech, located in Kunshan, China, has been a major supplier of industrial automation and precision tooling, particularly CNC machines, to Apple’s contract manufacturers. The Indian subsidiary of Justech Precision Industry Co. Ltd was set up in 2019 in Tamil Nadu. According to inside information, the Tata acquisition intends to amplify precision tooling and components fabrication, thus increasing its role in the sector from mere assembly to that of a full-fledged supplier.
Tata, through this purchase, will also be receiving Justech’s technology stack, supplier relations, and design expertise in high-tolerance manufacturing. This is in tune with Tata Electronics ’ larger strategy within Apple’s India operation. Earlier this year, the firm purchased a 60% stake in Pegatron’s Indian business, which encompasses the iPhone assembly plant close to Chennai. Tata already runs several factories, two in Tamil Nadu and one in Karnataka, a former Wistron site, and has been increasing its output for export markets.
According to market analysts, the increase in India’s share of global iPhone production is a fundamental change; Apple is engaging in global diversification in the face of trade tensions, supply chain risks and Trump’s new tariff exposure. Should the forecasts be right, India could hold over 25-26% of the global iPhone market by the end of this year. The acquisition of Justech’s Indian subsidiary not only reinforces Tata’s hardware and tooling base but also secures its position to get a larger share of the value created by the Apple manufacturing ecosystem that is constantly evolving. This agreement signifies a well-thought-out measure to climb the value chain, from merely assembling devices to incorporating technology.