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Auto components maker Sterling Tools Ltd shares rallied up to 4.3% on Monday, December 2, after the company announced a partnership with China’s Zhejiang Meishuo Electric Technology for providing power transmission solutions in India.
The company informed the stock exchanges in a filing that the partnership pertains to the manufacturing of latching relays for power transmission, industrial grids, and other applications in India.
The automotive fastener manufacturer has entered into a Technical Collaboration Agreement with the Chinese company Zhejiang Meishuo Electric Technology Co. Ltd, through its wholly-owned subsidiary, Sterling Tech-Mobility Ltd, according to the stock exchange filing.
The partnership is expected to generate a revenue of ₹200 crore for Sterling Tools by the financial year 2030, the company informed the bourses.
Through the association, Sterling Tools will introduce the niche technology of manufacturing and assembling latching relays in the country at a new facility in Bengaluru by making an initial investment of ₹20 crore.
The latching relays that Sterling Tools will locally manufacture through its partnership with Meishuo Electric are essential for reducing the consumption of power, thereby extending the lifespan of key components across smart metering systems, along with industrial and white goods applications.
Through the production of the aforementioned electrical components domestically, Sterling Tools aims to drive import substitution and reduce reliance on imports, aligning with the Atmanirbhar Bharat vision and supporting the Make in India initiative, the company said in a press release dated December 2.
The development will empower Indian companies and other suppliers to access advanced technology locally, building a self-reliant ecosystem for the industrial and white goods industries, it added.
Through its subsidiary, Sterling Tech-Mobility Ltd, Sterling Tools looks forward to expanding the manufacture of electrical components, systems, and relays, bolstering India’s industrial supply chain and reducing reliance on imports.
“This partnership takes a significant step toward localizing the production of latching relays. We are expanding beyond our automotive roots to meet India's growing demand for advanced technology in the energy sector,” stated the Director of Sterling Tools Ltd, Anish Agarwal.
Shares of Sterling Tools rallied as much as 4.27% to hit an intraday high of ₹723.85 per piece on the BSE in morning trade. However, the stock pared some of early gains to trade at ₹707.6 apiece, up 1.88%, on the BSE at 1:50 pm.
(Edited by : Poonam Behura)
