Big-gun Hero Group enters make-in-india electronics
Initially acquires set-top box developer, lines up Rs.5 billion to pour into electronics for India and export
One of India's well-known industrial groups, Hero says it has entered the electronics segment with plans to invest Rs 5 billion in the next few years. It announced the formation of a new company, Hero Electronix, which will spearhead the group's activities in the segment.
As its first strategic initiative, Hero Electronix will acquire a majority shareholding in Mybox Technologies Pvt Ltd, a leading manufacturer of set top boxes in the country. No financial details of this deal were disclosed.
Suman Kant Munjal, Chairman of the new company, said Hero Electronix would add associated business lines to its portfolio over the next few years and grow the vertical "to help India develop a much needed sustainable electronics ecosystem....The company has lined up investments of Rs 500 crore in next few years. This will give a huge impetus to the 'Make in India' initiative by helping reduce the imports of electronics into the country".
"Hero Electronix sees immense potential in Mybox and its management team. Using its core competence in hardware and embedded systems design, Mybox is strategically focusing on
fulfilling the demand of digitisation in India, while simultaneously developing products for the world," Hero Group said in its statement.
Mybox is a venture recognised by the government and approved by Department of Scientific and Industrial Research.
The US $5 billion Brijmohan Lall Munjal-led Hero Group has presence in over a dozen business verticals, with its two-wheeler firm Hero MotoCorp being the flagship.
India's electronic goods import grew by 14.85% to US $37.19 billion in 2014-15 from US $32.38 billion in the previous fiscal. The sector accounts for over 8% in the country's total imports.
From various press reports
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