Hero Group forays into electronics, plans Rs.500 crore investment

The $5-billion Brijmohan Lall Munjal-led Hero Group on Monday said it has forayed into the electronics sector with the formation of a new company Hero Electronix' and plans to invest Rs.500 crore for the purpose in the next few years.

As its first strategic initiative, Hero Electronix will acquire a majority shareholding in Mybox Technologies, the multi-operator manufacturer of set top boxes in the country, the company said in a statement.

Mybox is a supplier to marquee DTH and cable operators across India. It is a venture recognized by the government and approved by the Department of Scientific and Industrial Research.

The decision aligns with the 'Make in India' vision of the government and will help the growth of the sector, further, the statement added.

"Hero Electronix will add associated business lines to its portfolio over the next few years and grow the vertical to help India develop a much needed sustainable electronics ecosystem," said Hero Electronix chairman Suman Kant Munjal.

"The company has lined up investments of Rs.500 crore in next few years. This will give a huge impetus to the 'Make in India' initiative by helping reduce the imports of electronics into the country," he added.

As per the estimates of India Electronic and Semiconductor Association (IESA), the imports of electronics into India currently stand at 65 percent of the overall demand.