Amara Raja Electronics buys stake in Design Alpha

Hyderabad Amara Raja Electronics Ltd (AREL), an electronic systems design and manufacturing (ESDM) company and part of the $1.75 billion Amara Raja Group, has announced a strategic investment in Design Alpha (DFM Softech Solutions Pvt Ltd) an emerging engineering design company.

AREL Director Vikramadithya Gourineni and Design Alpha Founder Dr Suresh Nair signed the agreement. This move will position AREL as a fully integrated ESDM company, unlocking numerous opportunities in the electronics manufacturing business. The new entity is named as Amara Raja Design Alpha Pvt Ltd.

On the occasion, Gourineni said: “The acquisition will accelerate product development for AREL and allow us to leverage specialist knowledge. Under the leadership of Dr 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.”

Design Alpha, founded in 2017, specialises in supporting deep science and engineering development by offering design expertise and services. Recognised as an R&D facility by DSIR, Design Alpha has supported over 30 early-stage startups in their journey from lab to market.

As per NASSCOM study, the global hardware engineering and design services market will reach $152.75 billion by 2026, with an expected CAGR of 7 per cent. India's expenditure on engineering, research and design (ER&D) solutions could increase to $120 billion by the end of the decade from current $36 billion.

India currently contributes 26 per cent to the global ER&D spending and is expected to reach 34 per cent by the end of the decade. By acquiring Design Alpha, AREL will gain access to expertise in industrial design, embedded & mixed signal electronics, power electronics, optical & photonics and mechanical designs.

This will open doors to partnerships with large multinational corporations and expand their customer base.