Tata Group’s success in its bid to acquire an iPhone assembly plant in southern India would boost the country’s ambitions to become an electronics manufacturing hub, said a top executive of the conglomerate’s software services arm.
“I’m not directly involved in this but it should be really good for India as this will create an opportunity in India to manufacture electronics and microelectronics,” N Ganapathy Subramaniam, Operations Manager at Tata Consulting Services Ltd. said Bloomberg TV’s Rishaad Salamat and Haslinda Amin in an interview on Tuesday.
With the 128 billion US dollar Tata Group (approx apples Taiwanese vendor Wistron and intends to finalize the purchase of its assembly plant near Bangalore by the end of March. The salt-to-airline conglomerate has expanded its presence in the tech space, and the Indian government has taken steps to challenge China’s electronics dominance.
Subramaniam and Tata Group Chairman Natarajan Chandrasekaran are brothers who hail from the southern state of Tamil Nadu in India.
Shares of TCS fell as much as 2.7 percent on Tuesday after the company reported net income of 108.5 billion rupees ($1.3 billion) in the three months to December, beating the median analyst estimate of 110 .85 billion rupees missed.
“It’s a very, very broad, mixed environment, but given what momentum we’ve achieved and then the qualified pipeline that I’m seeing, I think it’s looking okay,” Subramaniam said.
The IT company announced a special dividend of 67 rupees per share on Monday, a move in line with its capital allocation policy, Subramaniam said.
TCS, Asia’s largest outsourcer, has enough cash to consider mergers and acquisitions and other strategic opportunities in areas like cybersecurity and cloud solutions, he said.
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