Motherson Group Joins Apple Supply Chain in India with BIEL Crystal Partnership
Motherson Group is set to become a key player in Apple’s supply chain network in India through a strategic partnership with BIEL Crystal Manufactory, a leading global provider of smartphone glass, according to The Economic Times.
This collaboration marks a significant expansion for Motherson Group, which, under the leadership of Vivek Chaand Sehgal, will become the second major Indian business group to supply Apple, following Tata. The venture aligns with Motherson’s strategy to diversify its manufacturing capabilities into new sectors.
BIEL Crystal, founded in 1989 in Shenzhen, China, initially focused on manufacturing watch crystals but now supplies glass screens for about two-thirds of all iPhones. The new joint venture will see Motherson Group holding a 51% stake and involves the establishment of a new manufacturing facility in southern India, likely in Tamil Nadu. The investment for this greenfield project is estimated to be between ₹2,000 crore and ₹2,500 crore, with an anticipated revenue of ₹8,000 crore to ₹8,500 crore within four to five years. The consumer electronics segment is expected to launch between July and September.
BIEL’s current production facilities in Guangdong, China, and Bac Ninh, Hai Duong, Vietnam, are already approved vendors for Apple in India. The company also supplies components to other major tech brands, including Samsung, Xiaomi, and Lenovo.
In January, Samvardhana Motherson International Ltd (SMIL) announced that its subsidiary, Samvardhana Motherson Innovative Solutions Ltd (SMISL), entered into agreements with BIEL Crystal (Singapore) Pvt Ltd. As part of this deal, BIEL will invest in Motherson Electronic Components Pvt Ltd (MECPL), a wholly owned subsidiary of SMISL. The specifics of the joint venture were not fully disclosed, but BIEL’s investment involves 0.01% compulsorily convertible preference shares (CCPS) that can be converted into 10% equity, and up to 49% on a fully diluted basis.
The agreement includes BIEL providing technical support, while SMISL will appoint most of the directors at MECPL, with BIEL able to nominate directors in proportion to its shareholding. Any issuance of shares or convertible securities to third parties will require mutual consent.
As Apple seeks to mitigate risks associated with heavy reliance on China, the company has encouraged its suppliers to expand production locations. Alongside India, Southeast Asian countries like Vietnam, Malaysia, Thailand, and the Philippines are also part of this diversification strategy. This shift is reflected in India’s growing electronics exports, which have recently surpassed gems and jewelry to become the third largest export sector by the end of the June quarter.
The Tata Group has already invested over $1 billion in new projects to strengthen its partnership with Apple, further emphasizing the significance of this strategic shift. Additionally, Corning, a major supplier of Gorilla Glass to Apple, is set to begin production at its Tamil Nadu facility in the latter half of 2025.
