Amara Raja Electronics acquires stake in engineering design firm Design Alpha
The development comes at a time the global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026
- Jul 6, 2023,
- Updated Jul 6, 2023 5:04 PM IST
Amara Raja Electronics, which is part of the Rs 12,000-crore Amara Raja Group, has announced that it has strategically invested in Design Alpha (DFM Softech Solutions Pvt. Ltd), which is an emerging engineering design company.
The agreement was signed by Vikramadithya Gourineni, Director, Amara Raja Electronics Ltd, and Dr Suresh Nair, Founder, Design Alpha.
This move will position Amara Raja Electronics as a fully integrated ESDM company, unlocking numerous opportunities in the electronics manufacturing business. The new entity will be named as Amara Raja Design Alpha Pvt. Ltd. (ARDAPL).
Founded in 2017, Design Alpha specialises in supporting deep science and engineering development by offering design expertise and services. Recognised as an R&D facility by DSIR, Design Alpha has supported over 30 early-stage start-ups in their journey from lab to market.
By acquiring Design Alpha, Amara Raja Electronics will gain access to expertise in industrial design, embedded and mixed signal electronics, power electronics, optical and photonics, firmware, and mechanical designs. This will open doors to partnerships with large multinational corporations and expand their customer base.
The acquisition will also facilitate the seamless integration of design and manufacturing processes, along with the provision of value-added services to enhance product performance, efficiency, and reduce time to market.
“The acquisition will accelerate product development for Amara Raja Electronics and allow us to leverage specialist knowledge. Under the able leadership of Suresh Nair, Design Alpha has grown multi-fold in the last few years. Its diverse range of services will enable AREL to serve clients from concept to product, offer customisation The development comes at a time the global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026and become agile to meet specific client requirements,” Gourineni said.
The development comes at a time the global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026, with an expected CAGR of 7 per cent, the companies stated in a release.
India's expenditure on engineering, research, and design (ER&D) solutions could increase to $120 billion by the end of the decade, compared to the current $36 billion, according to NASSCOM. India currently contributes 26 per cent to the global ER&D spending and is expected to reach 34 per cent by the end of the decade.
On Thursday, subsidiary Amara Raja Batteries stocks were trading at Rs 700, up 2.04 per cent from Wednesday's Rs 686.
The S&P BSE SmallCap index witnessed an impressive surge today as several stocks hit new 52-week highs. Besides Amara Raja Batteries, other standout performers were Action Construction Equipment, CEAT, which showcased their resilience and growth potential in the market.
Also read: TCS bets big on Azure Open AI, plans to train 25,000 engineers
Also read: CEAT, JK Tyre shares hit 52-week highs, zoom up to 19%; other tyre stocks climb too; here's why
Amara Raja Electronics, which is part of the Rs 12,000-crore Amara Raja Group, has announced that it has strategically invested in Design Alpha (DFM Softech Solutions Pvt. Ltd), which is an emerging engineering design company.
The agreement was signed by Vikramadithya Gourineni, Director, Amara Raja Electronics Ltd, and Dr Suresh Nair, Founder, Design Alpha.
This move will position Amara Raja Electronics as a fully integrated ESDM company, unlocking numerous opportunities in the electronics manufacturing business. The new entity will be named as Amara Raja Design Alpha Pvt. Ltd. (ARDAPL).
Founded in 2017, Design Alpha specialises in supporting deep science and engineering development by offering design expertise and services. Recognised as an R&D facility by DSIR, Design Alpha has supported over 30 early-stage start-ups in their journey from lab to market.
By acquiring Design Alpha, Amara Raja Electronics will gain access to expertise in industrial design, embedded and mixed signal electronics, power electronics, optical and photonics, firmware, and mechanical designs. This will open doors to partnerships with large multinational corporations and expand their customer base.
The acquisition will also facilitate the seamless integration of design and manufacturing processes, along with the provision of value-added services to enhance product performance, efficiency, and reduce time to market.
“The acquisition will accelerate product development for Amara Raja Electronics and allow us to leverage specialist knowledge. Under the able leadership of Suresh Nair, Design Alpha has grown multi-fold in the last few years. Its diverse range of services will enable AREL to serve clients from concept to product, offer customisation The development comes at a time the global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026and become agile to meet specific client requirements,” Gourineni said.
The development comes at a time the global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026, with an expected CAGR of 7 per cent, the companies stated in a release.
India's expenditure on engineering, research, and design (ER&D) solutions could increase to $120 billion by the end of the decade, compared to the current $36 billion, according to NASSCOM. India currently contributes 26 per cent to the global ER&D spending and is expected to reach 34 per cent by the end of the decade.
On Thursday, subsidiary Amara Raja Batteries stocks were trading at Rs 700, up 2.04 per cent from Wednesday's Rs 686.
The S&P BSE SmallCap index witnessed an impressive surge today as several stocks hit new 52-week highs. Besides Amara Raja Batteries, other standout performers were Action Construction Equipment, CEAT, which showcased their resilience and growth potential in the market.
Also read: TCS bets big on Azure Open AI, plans to train 25,000 engineers
Also read: CEAT, JK Tyre shares hit 52-week highs, zoom up to 19%; other tyre stocks climb too; here's why