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Amara Raja Electronics picks up significant stake in Design Alpha.

July 06, 2023 at 05:52 PM.

HYDERABAD: Electronic systems design and manufacturing (ESDM) player Amara Raja Electronics Limited (AREL), which is a part of the $1.75 billion Amara Raja Group, has acquired emerging engineering design firm Design Alpha (DFM Softech Solutions Pvt Ltd). Though AREL did not divulge the quantum of stake acquired and size of the deal, sources said the company has picked up a significant stake.

With this, Design Alpha will be renamed as Amara Raja Design Alpha Pvt Ltd (ARDAPL). AREL said the acquisition will position it as a fully integrated ESDM company and help it unlock numerous opportunities in the electronics manufacturing business.

The deal will give AREL access to expertise in industrial design, embedded & mixed signal electronics, power electronics, optical and photonics, firmware, and mechanical designs, opening doors to partnerships with large multinational corporations. 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, AREL added. “The acquisition will accelerate product development for AREL and allow us to leverage specialist knowledge. Its diverse range of services will enable AREL to serve clients from concept to product, offer customization and become agile to meet specific client requirements,” said AREL director Vikramadithya Gourineni, who inked the deal agreement with Design Alpha founder Dr Suresh Nair. Founded in 2017, Design Alpha, which is recognised as an R&D facility by DSIR, specializes in supporting deep science and engineering development by offering design expertise and services. It has supported over 30 early-stage start-ups in their journey from lab to market. The global hardware engineering and design services market, which is growing at a CAGR of 7%, is projected to reach a value of $152.75 billion by 2026 end. According to NASSCOM, India's expenditure on engineering, research, and design (ER&D) solutions could increase to $120 billion by the end of the decade, compared to the current $36 billion. India currently contributes 26% to the global ER&D spending and is expected to reach 34% by the end of the decade.

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