Hero Electronix acquires Tessolve Semiconductor

Hero Group's electronics venture Hero Electronix today announced acquisition of a strategic stake in Bengaluru-based Tessolve Semiconductor for an undisclosed sum as part of its plan to become a billion dollar global digital products and solutions enterprise.
The company also announced investment of Rs 1,000-1,200 crore in the next five to seven years on expansion, which will include partnerships, acquisitions and setting up of greenfield projects.
"The acquisition gives us a foot into futuristic products as Tessolve Semiconductor is into providing engineering expertise in semiconductor design, test/product engineering to global clients," Hero Electronix Founder Director Ujjwal Munjal told PTI.
He said the acquisition will be carried out in a phased manner and by the end of 2016, Hero Electronix will have a significant majority holding in Tessolve.

Currently, Tessolve has close to 900 employees with offices in India, Singapore, Malaysia and the US. Since its inception in 2004, its engineers have executed several turnkey development projects for various leading semiconductor companies globally.
Munjal said Tessolve is a strategic fit Hero Electronix' scheme of things to become a global digital enterprise.

"We would continue to add technological capabilities in the company by diversifying further in the semiconductor value chain, IoT, electronics components and services. Hero Electronix and its group companies plan to invest Rs 1,000-1,2000 crore in the next 5 to 7 years for expansion," he said.
"Our vision is to build a billion dollar global digital products and solutions enterprise. Our approach is to invest in businesses that are engineering led and IP driven. We are looking to support both local entrepreneurs and bring global technology leaders into India," he added.

When asked about funding of the investments, he said it will be by the Hero Group and other group firms reinvesting.
Tessolve Semiconductor CEO P Raja Manickam said the company is just "scratching the surface" of opportunities in the field of semiconductor engineering services.
"With Hero's investments we can look at a bigger lab...The combination of industry expertise, brand reach and operational efficiency that will allow us to provide enhanced customer experience and grow our business even further," he added.
Hero Electronix had acquired majority stake in MyBox Technologies in June 2015. MyBox Technologies is a leader in multi-operator manufacturer of digital set-top boxes in the country.