Hero group's electronics venture Hero Electronix has acquired Germany-based TES DST Holding Europe's India business, marking its entry into the designing and manufacturing of innovative products in domains like automotive and avionics.
The company said it has acquired the business through Tessolve Semiconductor, in which Hero Electronix took strategic stake in April. "With this partnership Hero Electronix now has the expertise to offer sophisticated technological products encompassing embedded software and hardware development for domains like automotive, avionics, transportation, industrial and home automation," Hero Electronix Founder-Director Ujjwal Munjal said.
When asked about the cost of acquisition, he said details cannot be shared due to confidentiality clause, but added that "it is part of the planned investment ranging between Rs 1,000 to Rs 1,200 crore in the next 5 to 7 years for expansion." The acquisition is in line with the company's approach of investing in businesses that are engineering-led and IP-driven, Munjal said. With the acquisition, Hero Electronix now has a dedicated electronics system design arm. The new division, Tessolve Embedded Systems, will focus on supporting the design and manufacture of innovative electronic products for global companies. Tessolve will do this by bringing together comprehensive capabilities in chip design, system design and embedded software that are available within Hero Electronix. In future, the division will be the innovation lab for the IoT (Internet of Things) companies, including startups, across the country.
The aim would be to offer complete product development life cycle solution, from idea conceptualisation to product development and manufacturing, Munjal said.
"The acquisition has extended Tessolve's capabilities from chip design to developing digital systems and products. Going further Tessolve plans to further strengthen its capabilities in Analog Chip Design space," he added. The acquisition is another step towards building Hero Electronix into a $1 billion global digital products and solutions enterprise through investments in engineering-led and IP-driven businesses.
"With the aim of making Hero Electronix a $1 billion global digital enterprise, we continue to add technological capabilities and expertise," Hero Electronix Chairman Suman Kant Munjal said.