Amara Raja Electronics acquires stake in Design Alpha

Amara Raja Electronics Limited (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.

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

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

The global hardware engineering and design services market is projected to reach a value of $152.75 billion by the end of 2026, with an expected CAGR of 7%. 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, according to NASSCOM. India currently contributes 26% to the global ER&D spending and is expected to reach 34% by the end of the decade.

By acquiring Design Alpha, AREL will gain access to expertise in industrial design, embedded and mixed signal electronics, power electronics, optical and photonics, firmware, and mechanical designs. This will open doors to partnerships with large multinational corporations and expand their customer base. 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.

Gourineni expressed enthusiasm about the strategic partnership with Design Alpha, emphasizing its potential to drive value for all stakeholders. “The acquisition will accelerate product development for AREL and allow us to leverage specialist knowledge. Under the able 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 customization and become agile to meet specific client requirements. We welcome Design Alpha aboard and look forward to a fruitful collaboration ahead,” he said.

Dr. Nair expressed his excitement about the collaboration with AREL, stating that it would propel the company to unprecedented achievements and open doors to novel prospects. “AREL is an esteemed entity in the ESDM sector and we are delighted to be forging a partnership with such a renowned organization, which would undoubtedly contribute to the continued success and expansion of Design Alpha” he said.