Amara Raja Electronics acquires stake in Design Alpha

The agreement was signed by Amara Raja Electronics Director Vikramadithya Gourineni and Dr Suresh Nair, the founder of Design Alpha.

Electronic Systems Design and Manufacturing (ESDM) company Amara Raja Electronics Limited (AREL), which is a part of the $1.75-billion Amara Raja Group, on July 6 announced a strategic investment in engineering design firm Design Alpha (DFM Softech Solutions Pvt Ltd).

The new entity will be named Amara Raja Design Alpha Pvt Ltd (ARDAPL).

The agreement was signed by Amara Raja Electronics Director Vikramadithya Gourineni and Suresh Nair, the founder of Design Alpha. According to a release, this move will “position AREL as a fully integrated ESDM company, unlocking numerous opportunities in the electronics manufacturing business”.

By the stake purchase in 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, the release added. It explained that this move 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,” it said.

Commenting on the acquisition, Gourineni said: “The acquisition will accelerate product development for AREL 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 and become agile to meet specific client requirements.”

Nair said the collaboration with AREL “would propel the company to unprecedented achievements and open doors to novel prospects”

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 percent, the companies stated in a release.

India's expenditure on engineering, research, and design (ER&D) solutions may increase to $120 billion by the end of the decade, compared to the current $36 billion, according to NASSCOM. At present, India contributes 26 percent to global ER&D spending, which is expected to reach 34 percent by the end of the decade.