Sterling Tools Partners with Zhejiang Meishuo for Power Transmission Solutions

2 Dec 2024 , 06:11 PM

Sterling Tools Ltd shares gained 4.3% on 2 December after the company said it had entered a strategic tie-up with China’s Zhejiang Meishuo Electric Technology Co. Ltd. The tie-up would focus on latching relays for power transmission, industrial grids, and other applications in India, said the filing by the company at the stock exchange.

The technical collaboration agreement would be between Sterling Tools’ wholly-owned subsidiary Sterling Tech-Mobility Ltd. Sterling Tools expects revenue from the business to come in at ₹200 crores by 2030.

A new manufacturing and assembly facility for latching relays is planned to be established at Bengaluru with an initial investment of ₹20 crores. Latching relays manufactured locally in the country will reduce the power consumption and increase the life span of the component used in smart metering systems, industrial applications and white goods.

This initiative further supports the vision of Atmanirbhar Bharat, driving in import substitution and reducing reliance on imports from foreign nations, along with the initiative of Make in India.

The development would be empowering Indian companies and suppliers with cutting-edge technology to make for a self-reliant industrial ecosystem.
With Sterling Tech-Mobility, the company plans to diversify its portfolio beyond its auto origins into the energy domain. Sterling Tools’ Director, Anish Agarwal said the deal marked a milestone in localization of latest technology for coming energy demands in India.