China’s TCL Electronics is in discussions with several Indian companies to sell a 51 per cent stake in its display manufacturing plant in the country, seeking between $600 million – $800 million for the transaction.
Standard Chartered, which is advising TCL on the deal, is in talks with Dixon Technologies, Epack Durable, Syrma SGS Technology, Amber Enterprises and Uno Minda. Havells was also approached but the company is not interested in investing in display backward integration.
TCL’s plant in Tirupati, Andhra Pradesh, is India’s only open-cell manufacturing facility, producing the most critical component used in displays across televisions, smartphones, laptops, tablets and automotive screens. The facility is owned and operated by the local arm of TCL Corp’s global subsidiary, TCL China Star Optoelectronics Technology (TCL CSOT). TCL is looking to bring in two local partners, while retaining a 49 per cent stake and remaining the largest shareholder in the Indian entity.
Additionally, the company is seeking to structure the deal along the lines of fellow Chinese electronics maker Haier, which recently divested 49 per cent of its Indian arm to Bharti Enterprises and Warburg Pincus, retaining 49 per cent itself with the remaining 2 per cent held by its India management team.
