TCL Electronics Plans to Sell 51% Stake in Indian Display Plant
China's TCL to sell 51% in Indian plant
The Economic TimesImage: The Economic Times
TCL Electronics, a leading Chinese television manufacturer, is negotiating to sell a 51% stake in its display manufacturing plant in Tirupati, Andhra Pradesh, India, for $600-800 million (₹5,708-₹7,611 crore). The company aims to partner with local firms while retaining a 49% stake to enhance its operations in India.
- 01TCL Electronics is looking to divest 51% of its display manufacturing plant in India.
- 02The plant in Tirupati is the only open-cell manufacturing unit in India.
- 03TCL aims to partner with two local firms while retaining a 49% stake.
- 04The company has invested over ₹1,800 crore in the plant's development.
- 05Discussions are ongoing and may conclude in the next two to three months.
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TCL Electronics, the largest television manufacturer in China, is in discussions to sell a 51% stake in its display manufacturing facility located in Tirupati, Andhra Pradesh, India. The company is seeking between $600 million and $800 million (approximately ₹5,708 crore to ₹7,611 crore) for this divestment. The plant is significant as it is India's only open-cell manufacturing unit, producing essential components for various display devices, including TVs and smartphones. TCL's local subsidiary, TCL China Star Optoelectronics Technology (TCL CSOT), operates the facility, which has seen an investment of over ₹1,800 crore in its first phase. The company plans to retain a 49% stake after the sale, similar to the recent divestment strategy employed by fellow Chinese firm Haier. TCL is under pressure from the Indian government to localize its operations, aligning with India's strategy for electronic component production. The negotiations involve several potential local partners, including Dixon Technologies and others, although discussions are still in the early stages and could finalize within the next two to three months.
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The divestment could lead to increased local investment and partnerships in India's electronics sector, supporting the government's localization efforts.
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