Avantha Group Company CG has entered into a memorandum of understanding (MoU) with French enterprise Arelis that specialises in design and manufacturing of high-tech electronic solutions.
On one side the two companies agree to explore manufacturing and supply of hybrid microelectronics for high mix-mid volume market and for high runner microelectronics hybrids markets for Aerospace and Defence, Energies, Utilities and Telecommunication sectors. With the technology transfer from Arelis on hybrid microelectronics, CG will be able to indigenously manufacture the components and sub-assemblies for Indian and global markets.
On the other side CG and Arelis agree on the manufacturing and supply of electrical, electronics and microelectronics components to key Indian Aerospace and Defence programmes as well as to global OEMs targeting offset discharge.
This collaboration derives competitiveness from the strengths of the two companies: Arelis' technical knowhow in Aerospace and Defence electronics and access to global OEMs and CG's strong manufacturing capability in India and cost efficient vendor base to localise the production in India.
The already large capital expenditure in Indian defence market is expected to double over the next 5 years. Out of this expenditure, 10 percent-12 percent will be incurred on electrical, electronics, microelectronics, hybrids components and equipment, providing an annual opportunity of about US$ 2 billion. This collaboration will also help OEMs to fulfil their offset obligation in various projects and access to cost competitive high technology manufacturing.
CG is already engaged with the manufacturing and supply of several critical components, like motors and transformers for the defence sector. With strong Indian manufacturing footprint in electrical and electronics and ready capability to move into microelectronics/hybrid, CG is well positioned to be a significant player in this segment.
"We are proud of this association with CG a key industrial electronics player. This collaborative agreement creates a great synergy by reinforcing CG electronics technologies and industrial knowhow while offering to Arelis a huge manufacturing potential and a long established presence in the Indian market", says Pascal Veillat Chairman of Arelis Group.
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