TCL eyes bigger India play with stake sale plan

Chinese electronics major TCL is considering a stake sale in its India TV manufacturing unit while pursuing a joint venture with Sony, signalling a deeper push to localise operations and expand in a competitive market.

TCL is evaluating plans to sell a stake in its television manufacturing business in India, as part of a broader strategy to expand its footprint in one of the world’s fastest-growing consumer electronics markets. According to reports, the company is working with advisors to potentially raise around $200 million, although discussions remain at an early stage and may not necessarily result in a transaction.

The move reflects a growing trend among global electronics firms to strengthen local operations in India. With rising competition and policy emphasis on domestic manufacturing, companies are increasingly looking to partner with local investors and reduce reliance on imports. TCL’s potential stake sale is seen as a step in that direction, aimed at bringing in capital while building stronger local alliances.

Industry trend towards localisation

The development mirrors similar strategies adopted by other global players. For instance, Haier last year agreed to sell a 49 percent stake in its India operations to investors including Bharti Enterprises and Warburg Pincus. Such moves highlight a broader “Made in India” approach, where companies aim to align more closely with local market dynamics and regulatory frameworks.

India’s television market has become increasingly competitive, with established brands and new entrants vying for market share. Companies are now focusing not only on pricing and product innovation but also on supply chain efficiency and domestic production capabilities.

Partnership with Sony signals long-term plans

Alongside the stake sale discussions, TCL is also advancing a separate partnership with Sony Group. The two companies have signed a memorandum of understanding to form a joint venture covering televisions and home audio products. Under the proposed structure, TCL will hold a majority 51 percent stake and oversee operations, while Sony will retain a 49 percent share.

The joint venture is expected to commence operations in 2027, subject to regulatory approvals. Products will continue to be marketed under Sony’s established branding, including its BRAVIA lineup, ensuring continuity for consumers.

Taken together, these developments point to a long-term strategy by TCL to deepen its presence in India. By combining local manufacturing expansion with global brand partnerships, the company appears to be positioning itself to compete more effectively in a crowded and rapidly evolving market.