Adani Enterprises Ltd has picked up an undisclosed stake in Bengaluru-based defence electronics and avionics firm Alpha Design Technologies Pvt. Ltd for Rs 400 crore ($55.5 million) in cash.
The firm has bought the stake through its wholly-owned subsidiary Adani Defence Systems and Technologies Ltd, the Gautam Adani-led company said in a stock-exchange disclosure.
Alpha Design will provide Adani Defence a strong capacity for building a base for graduating to platform capabilities, Adani Enterprises said.
Established in 2003, Alpha Design is involved in the design, development and manufacture of defence electronics and avionics.
Alpha Design specialises in research and development, manufacturing, assembly, testing, qualification, integration and installation of defence electronics, avionics and space satellite systems, according to its website.
Its key customers include defence public sector units, Indian armed forces and Indian Space Research Organisation.
The company’s consolidated revenue stood at Rs 218 crore for the year through March 2018, up from Rs 210 crore the previous year.
Last year, Adani Defence had bought a 26% stake each in AutoTec Systems and Comprotech Engineering, according to VCCEdge, the data intelligence platform of VCCircle.
In 2016, Adani Enterprises and Israel’s Elbit Systems formed a joint venture to manufacture unmanned aerial systems for the Indian armed forces.
Apart from defence and aerospace, Adani Enterprises has presence in integrated coal management and mining, solar cells and module manufacturing, agri-storage infrastructure and services as well as edible oils and food products.