Sterling Tools Inks MoU With South Korea's Yongin Electronics

Mobility Outlook Bureau
18 Apr 2024
02:00 PM
1 Min Read

Targets INR 250 crore revenue by FY30 in EV components drive in this next phase of growth.

Sterling Tools Inks MoU With South Korea

Sterling Tools Limited has announced a strategic partnership with South Korea-based Yongin Electronics, a key supplier to the Hyundai Kia Motor Group. This Memorandum of Understanding (MoU) is set to propel Sterling Tools into the next phase of growth within the electric vehicle (EV) components sector, targeting a revenue of INR 250 crore by fiscal year 2030.

The MoU marks a notable step for Sterling Tools as it prepares to establish a greenfield manufacturing facility in India, dedicated to the production of EV and electronic components. This initiative aligns with India's 'Atma Nirbhar Bharat' (Self-Reliant India) campaign, aiming to enhance local manufacturing capabilities and reduce dependency on imports.

Yongin Electronics brings over four decades of expertise in the production of electronic components such as transformers, reactors, coils, and connectors. This partnership will leverage Yongin's technological prowess to augment Sterling’s existing portfolio, particularly in the magnetic components necessary for EV and hybrid technologies.

Anish Agarwal, Director at Sterling Tools Limited, emphasised the strategic importance of this alliance, 'This MoU is a testament to Sterling’s commitment to the EV and electronics sectors and aligns with our vision to bolster the 'Make in India' initiative. By collaborating with Yongin, we are enhancing our technological capabilities and are poised to play a pivotal role in India’s EV industry.'

K H Kim, CEO of Yongin Electronics, also commented on the partnership's potential impact on the Indian market, 'This collaboration is not just about business growth but also about fostering technological exchange and innovation that will drive the industry forward.'

This collaboration is expected to not only meet the growing demands of the local and global markets but also to set new standards in manufacturing excellence within the automotive sector. The establishment of the new facility is a move towards modernising India’s automotive component manufacturing and enhancing the supply chain for EVs, positioning Sterling Tools at the forefront of the industry’s shift towards green energy solutions.

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