India, May 9 -- TCL Electronics is exploring the sale of a 51% stake in its Tirupati display plant, which at first glance may appear to be a partial exit. However, the real story lies in who is likely to acquire this asset, especially at a time when India's electronics manufacturing services (EMS) sector is targeting over $500 billion in output by 2030 and is increasingly focused on localisation and deeper value addition.

Why is TCL looking at the stake sale The move is largely spurred by India's increasing localisation mandates and the need for higher domestic value addition in electronics manufacturing. At the same time, TCL appears to be de-risking its India operations by bringing in local partners while retaining a minority stake. ...