Tech giant Apple is in advanced discussions with Indian conglomerates Murugappa Group and Titan to assemble and produce sub-components for the camera modules used in iPhones, The Economic Times reported on April 16.
If a deal is struck, it will mark a gradual shift in Apple’s operations from China to India, the report further added.
Titan shares closed down 0.50 per cent at ₹3,601.55 on April 15, on the Bombay Stock Exchange (BSE).
Apple does not have any Indian suppliers for the critical camera module component in its smartphones. Partnering with either Titan or Murugappa Group could help address this gap. A deal is likely to be finalised within the next five to six months, according to a source quoted by the ET.
“Murugappa Group, in particular, with its acquisition of Moshine Electronics, has an advantage. In the future, with a potential fab, it could manufacture the image sensor,” one person with knowledge of the discussions said.
Livemint could not independently verify this news development.
The camera module is considered a major challenge for Apple in India, as it is a crucial component the company has struggled to source locally.
Titan, a Tata Group company, specialises in precision manufacturing for watches and jewellry, while the diversified Murugappa Group has a presence across sectors spanning auto parts and abrasives. The latter’s 2022 acquisition of Noida-based camera module maker Moshine Electronics is seen providing a strategic advantage, as per the report.
Similarly, the Tata conglomerate, of which Titan is a part, could also progress from assembling camera modules and sub-components to eventually setting up dedicated manufacturing facilities, the report added.
Localising camera module production would serve as a strong foundation for Apple to build a more comprehensive supply chain in India, helping the company address this key challenge in its local operations, the report said.
Apple, Murugappa Group and Titan have not officially confirmed the reported negotiations. Mint was unable to independently verify the details provided by the sources quoted in the original report.
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Published: 16 Apr 2024, 09:11 AM IST