CG (formerly Crompton Greaves) of the Avantha group has signed a memorandum of understanding (MoU) with Arelis of France to source technology and knowhow for manufacture and supply of electronics components for the aerospace and defence sector. Arelis specialises in design and manufacturing of high-tech electronic solutions. As per the MoU, the two companies have agreed to explore manufacturing and supply of hybrid microelectronics for aerospace and defence, energies, utilities and telecommunication sectors.
With technology transfer from Arelis, CG plans to indigenously manufacture components and sub-assemblies for Indian and global markets. CG and Arelis have also agreed on 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, CG said in a filing to the stock exchange.
“This collaboration 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,” Pascal Veillat, Chairman, Arelis Group, said.
“This association is in line with CG’s growth strategy to expand in high value added defence electronics activities and be a significant player within the Indian defence sector,” Laurent Demortier, CEO and Managing Director, CG said. “CG with its largest Indian industrial base and reach will leverage this coordination,” he added.
As the Indian government has embarked on large capital expenditure to enhance its defence capabilities, 10 to 12 per cent of the budget will be spent on electrical, electronics, microelectronics and hybrid components and equipment, providing an annual opportunity of $2 billion. CG and Arelis are eyeing part of this business.
