Chinese mobile company Vivo is a major player in the Indian smartphone market, consistently launching new phones and ranking among the top five mobile companies in the country. Reports surfaced suggesting that Ratan Tata’s Tata Group was interested in acquiring a significant portion of Vivo’s Indian operations.
According to The Times of India, Vivo, which generated Rs 30,000 crore in revenue during FY23, was in discussions to sell a 51% stake in its Indian operations to the Tata group. The deal was seen as a way for Vivo to ‘Indianise’ its operations amid increasing pressure from the Indian government.
However, the deal was ultimately blocked by Apple, a major player in the electronics industry led by CEO Tim Cook. Apple’s opposition stemmed from its current manufacturing partnership with Tata Group at its Bangalore plant. Apple reportedly feared that Tata Group’s acquisition of Vivo would create a direct competitor, jeopardizing its existing relationship with Tata. A source quoted by The Times of India stated, “This has been one of the key reasons that scuttled the plan. For Apple, any deal of the Tata group, its key manufacturing ally, with Vivo would have meant a partnership with a competitor. This perhaps led to the talks breaking down between Tatas and Vivo.”
A Tata Group spokesperson denied the development, stating, “We are denying this development.” The Tata Group entered the Indian electronics manufacturing space in November 2023 through Tata Electronics, acquiring Taiwanese Wistron’s local operations for Rs 1000 crore. Tata became the first Indian company to manufacture Apple iPhones.
The acquisition of Vivo would have solidified Tata Group’s position as a significant player in India’s smartphone sector. However, Apple’s objection ultimately prevented the deal from going through, highlighting the complex dynamics within India’s technology industry.
