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According to reports, Apple is engaged in advanced discussions with prominent conglomerates, namely Murugappa Group regarding the assembly and potential manufacturing of sub-components tailored for iPhone camera modules in India. 

Currently, Apple lacks Indian suppliers for the camera modules integrated into its renowned smartphones, many of which are presently assembled within India. Collaborating with Murugappa Group presents an opportunity to mitigate this shortfall. 

This potential deal could signify a significant change in Apple’s manufacturing operations, moving away from China and towards India. The negotiations are predicted to conclude within the next five to six months. 

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As per the reports, Apple intends to shift a minimum of fifty percent of its supply chain operations to India. Additionally, the company aims to enhance local value addition from suppliers by approximately fifty percent within the ensuing three years. 

Chennai-headquartered Murugappa Group is an over 100-year-old industrial house with 29 businesses, including 10 companies listed on the NSE and BSE. The Group’s portfolio spans various sectors such as agriculture, engineering, financial services, and more. 

Listed below are the stocks of Murugappa Group that could potentially benefit from the partnership with Apple:

CG Power & Industrial Solutions Ltd 

CG Power is a part of the Murugappa Group, the company is looking to venture into the semiconductor space by setting up a semiconductor plant through its subsidiary, CG Power and Industrial Solutions. The semiconductor plant will provide semiconductor assembly, packaging and testing of circuits, which are crucial components in the manufacturing of electronic devices, including smartphones like the iPhone. 

Furthermore, CG Power recently entered into a joint venture agreement with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in India. 

In this venture, CG Power will hold a majority stake of 92.3 percent, while Renesas and Stars Microelectronics will have stakes of approximately 6.8 percent and 0.9 percent respectively. 

The joint venture plans to invest Rs. 7,600 crores over the next five years. The funding for this investment will come from a combination of subsidies, equity, and potential bank loans as needed. 

With a market capitalization of Rs. 79,116 crores, the shares of CG Power & Industrial Solutions started Tuesday’s trading session on a flatter note at Rs. 493 compared to its previous close of Rs. 494.70. During the trading session, the shares hit a high of Rs. 519.30, gaining around 5 percent and closed the day at Rs. 517 apiece. 

Looking at the company’s financial statements, the revenue decreased marginally by 1.14 percent from Rs. 2,002 crores during the September quarter to Rs. 1,979 crores in the December quarter. On the other hand, the net profits magnified by 209 percent from Rs. 242 crores to Rs. 748 crores during the same timeframe.

Tube Investments of India Ltd 

The Murugappa Group possesses a strategic advantage, particularly with its acquisition of Moshine Electronics. Earlier, Tube Investments of India Limited, one of the group companies of Murugappa group through its 100 per cent subsidiary Tl Clean Mobility Private Limited (TICMPL) acquired a 76 percent stake in Moshine Electronics Private Limited (Moshine) for Rs 7.38 crore. Moshine specializes in the manufacturing and sale of camera modules for mobile phones. 

With a market capitalization of Rs. 68,561 crores, the shares of Tube Investments of India started Tuesday’s trading session on a flatter note at Rs. 3,490.85 compared to its previous close of Rs. 3,489.90. During the trading session, the shares hit a high of Rs. 3,545, gaining 2 percent and closed the day at Rs. 3,521 apiece. 

Looking at the company’s financial statements, the revenue decreased by 2.5 percent from Rs. 4,306 crores during the September quarter to Rs. 4,197 crores in the December quarter. On the other hand, the net profits magnified by 142 percent from Rs. 341 crores to Rs. 824 crores during the same timeframe. 

Written By Vaibhav Patil

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