Mumbai, Maharashtra, India:
- To jointly manufacture and supply products
- Electrical, electronic, microelectronic and hybrid microelectronics for aerospace and defence arena
- Technology transfer to CG for localised manufacturing
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, 10-12% will be incurred on electrical, electronics, microelectronics, hybrids components and equipment, providing an annual opportunity of about 2 billion USD. 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. “With already 40% of its global business abroad especially in Russia, Africa and South East Asia, this tremendous opportunity allows Arelis to develop a new rapidly growing export market and to demonstrate its industrial competencies from specifications, design to the complete integration”, adds Pascal Veillat.
Commenting on this association, Avantha Group Company CG’s CEO and Managing Director Laurent Demortier said, “We are very excited to collaborate with Arelis who have commendable experience of working with global defence players and significant knowhow in the manufacturing of mission critical equipment. 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”. Mr Demortier added, “CG with its large Indian industrial base and reach will leverage this coordination”.
