Tata Group plans to invest over Rs 11,000 crore or $1.5 billion in setting up a mobile phone

The $113 billion Tata Group plans to invest over Rs 11,000 crore or $1.5 billion in setting up a mobile phone and component manufacturing plant in Tamil Nadu to take advantage of the government's production linked incentive (PLI) scheme aimed at attracting investments for India, which would otherwise have gone to China.

According to a news report, Tata Sons is looking to secure $750 million to $ 1 billion in external commercial borrowings while mobilizing the remaining sum through internal accruals. They plan a capital expenditure of $1.5 billion for building manufacturing capacity in this area.

Also Tata group has now decided to enter the manufacturing of phone components. The group will build an industrial complex at Hosur in Tamil Nadu at a cost of Rs 5000 crore. According to a report by 'Hindu Business Line', components of Apple phones will be made in it. Actually, the app wants to gradually move its manufacturing base out of America.

Foxconn, the largest manufacturer of Apple phones, is manufacturing other phones including iPhone 11 in Sri Perambudur in Tamil Nadu. Tata Electronics, the electronic arm of the Tata group, has been provided 500 acres of land by the Tamil Nadu Industrial Development Corporation (TIDC).