Tata Sons is reportedly seeking up to $1 billion in external commercial borrowings (ECB) to set up a globally scalable mobile phone and component contract manufacturing plant in Tamil Nadu. This plant will also produce iPhone components.
Tata Sons owned Tata Electronics will lead the initiative and start the production with iPhone casings. Eventually the company aims to partner with other original equipment manufacturers (OEMs) in South Korea and Japan.
As per industry sources, Tata Group is considering a total capital expenditure of $1.5 billion for this project. This capex requirement will be met through a combination of internal accruals and borrowings.
