Amara Raja Electronics Limited (AREL), an electronic systems design and manufacturing (ESDM) company, has announced a strategic investment in Design Alpha (DFM Softech Solutions Pvt. Ltd), an emerging engineering design company.
REL, an arm of the $1.75 billion Amara Raja Group, has not disclosed the size of the deal.
Vikramadithya Gourineni, Director of Amara Raja Electronics Ltd., and Suresh Nair, Founder of Design Alpha, signed the agreement.
“This move will position AREL as a fully integrated ESDM company, opening new opportunities in the electronics manufacturing business. The new entity will be named as Amara Raja Design Alpha Pvt.Ltd. (ARDAPL),” an AREL executive said.
The six-year-old Design Alpha was recognised as an R&D facility by the Department of Scientific and Industrial Research and supported over 30 early-stage start-ups in their journey from lab to market.
“The global hardware engineering and design services market is projected to touch the $150-billion mark by 2026, with a projected compound annual growth rate of 7 per cent. India’s expenditure on engineering, research, and design (ER&D) solutions could go up to $120 billion by 2030 as against the present level of $36 billion,” the company said, quoting a Nasscom report.
“By acquiring Design Alpha, AREL will gain access to expertise in industrial design, embedded and mixed signal electronics, power electronics, optical and photonics, firmware, and mechanical designs,” it said.
“The acquisition will also facilitate the seamless integration of design and manufacturing processes,” it said.