Crompton Greaves Ltd (CG), a part of Gautam Thapar-promoted Avantha Group, has inked a memorandum of understanding (MoU) with France-based Arelis to manufacture and supply electronic products, as per a stock market disclosure.
The terms of the arrangement and whether it is a formal joint venture was not made public.
This pact will help CG manufacture the components and sub-assemblies for Indian and global markets. Jointly, both the firms agreed to explore manufacturing and supply of microelectronics for high mix-mid volume markets for aerospace and defence, energies, utilities and telecommunication sectors.
“This association is in line with CG’s growth strategy to expand in high value added defence electronics activities and be a significant player within the Indian defense sector. CG with its large Indian industrial base and reach will leverage this coordination,” said Laurent Demortier, CG’s CEO and MD.
CG is already engaged with the manufacturing and supply of several critical components, like motors and transformers for the defence sector.
“This collaborative agreement creates a great synergy by reinforcing CG electronics technologies and industrial know-how while offering to Arelis a huge manufacturing potential and a long established presence in the Indian market”, said Pascal Veillat, chairman, Arelis Group.
“With already 40 per cent of its global business abroad especially in Russia, Africa and South East Asia, this tremendous opportunity allows Arelis to develop a new rapidly growing export market and to demonstrate its industrial competencies from specifications, design to the complete integration,” Veillat added.
Formed in 2010, Arelis is a major industrial and strategic partner in microwave, radio frequency, energy conversion and testing. The company specialises in design and manufacturing of high-tech electronic solutions.
CG is a global leader in the management and application of electrical energy. It provides electrical products, systems and services for utilities, power generation, industries, and consumers. The company employs 15,000 people across its operations in around 85 countries. It clocks $2.3 billion in revenues from product lines that cover the entire value chain of engineering offerings.
Avantha Group is planning to sell a part of its stake in Crompton Greaves Consumer Products Ltd, the proposed demerged consumer business division.
(Edited by Joby Puthuparampil Johnson)