According to a report by The Economic Times on April 16, tech giant Apple is in advanced talks to assemble and supply sub-components for the camera modules used in iPhones with Indian conglomerates Murugappa Group and Titan.
The report went on to say that if an agreement is reached, Apple’s operations will gradually move from China to India.
On April 15, Titan shares ended the day 0.50 percent lower at ₹3,601.55 on the Bombay Stock Exchange (BSE).
For the vital camera module component of its devices, Apple does not source from any Indian companies. Creating a partnership with Murugappa Group or Titan might help in filling this gap. A source cited by the ET stated that a deal is expected to be finalized within the next five to six months.
“Murugappa Group, in particular, has an edge because it acquired Moshine Electronics. One source with knowledge of the conversations stated, “In the future, it could manufacture the image sensor with a potential fab.”
Livemint was unable to independently confirm the news report.
Since the camera module is a vital component that Apple has had difficulty sourcing locally, it is thought to provide a significant problem for the firm in India.
The versatile Murugappa Group is present in a number of industries, including abrasives and auto parts, whereas Titan, a Tata Group a subsidiary, focuses in precision manufacture for watches and jewellery. The study views the latter’s acquisition of Noida-based Moshine Electronics, a manufacturer of camera components, in 2022 as offering a strategic edge.
The study also stated that the Tata group, of which Titan is a part, may eventually move from assembling camera modules and sub-components to establishing specialized manufacturing facilities.
According to the report, localizing the production of camera components would provide Apple with a solid platform upon which to construct a more extensive supply chain in India, helping the corporation to tackle this major difficulty in its local operations.
Titan, Apple, and Murugappa Group have not formally acknowledged the rumored talks. Mint was not able to independently confirm the information supplied by the sources that were cited in the first report.