Sterling Tools expands into energy sector with Chinese tech partnership

Anupama Ghosh Updated - December 02, 2024 at 02:40 PM.

Sterling Tools’ partnership with Zhejiang Meishuo Electric Technology aims to generate ₹200 crore in revenue by fiscal year 2030

Sterling Tools Limited has announced a strategic technical collaboration with Zhejiang Meishuo Electric Technology Co. Ltd to manufacture latching relays for the energy and industrial sectors in India. The partnership, revealed today, aims to generate ₹200 crore in revenue by fiscal year 2030.

The shares of Sterling Tools Limited were trading at ₹709.30 up by ₹14.60 or 2.10 per cent on the NSE today at 1.30 pm. The shares hit its 52-week high today at ₹723.80.

The company will establish a new manufacturing facility in Bengaluru, with an initial investment of ₹20 crore. The collaboration focuses on producing latching relays for power transmission, smart metering systems, and consumer appliances. These specialised electromechanical switches draw power only when changing states, helping to reduce energy consumption.

Sterling Tools’ Director Anish Agarwal highlighted the move as a significant step towards localising advanced technology production. The partnership aligns with the government’s Atmanirbhar Bharat and Make in India initiatives by reducing import dependence on electrical components.

The wholly owned subsidiary, Sterling Tech-Mobility Limited, will lead the manufacturing efforts. This expansion marks Sterling Tools’ strategic diversification beyond its traditional automotive fastener business, positioning the company to capitalise on emerging opportunities in the energy and industrial sectors.

Published on December 2, 2024 09:10

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