Sterling Tools has partnered with Zhejiang Meishuo Electric to locally produce latching relays, aiming for Rs. 200 crore in revenue by FY30. The initiative supports India’s self-reliance and reduces reliance on imports in the energy sector.
02 Dec 2024 | 3476 Views | By Autocar Professional Bureau
Sterling Tools Limited, a leading automotive fastener manufacturer in India, has entered the energy sector through its wholly owned subsidiary, Sterling Tech-Mobility Limited. The company has formed a partnership with Zhejiang Meishuo Electric Technology Co., Ltd. of China to locally manufacture latching relays for use in the energy sector, industrial ...
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Sterling Tools Limited, a leading automotive fastener manufacturer in India, has entered the energy sector through its wholly owned subsidiary, Sterling Tech-Mobility Limited. The company has formed a partnership with Zhejiang Meishuo Electric Technology Co., Ltd. of China to locally manufacture latching relays for use in the energy sector, industrial grids, and various applications in India.
These relays play a key role in reducing power consumption and extending the lifespan of essential components in smart metering systems and industrial and consumer appliances. They facilitate remote connection and disconnection of power to consumer premises, using a latch mechanism that minimizes energy consumption during operation.
This partnership is expected to generate Rs. 200 crore in revenue by FY30. Sterling Tools plans to make an initial investment of Rs. 20 crore to establish a new facility in Bengaluru for the local manufacturing and assembly of latching relays. By producing these components in India, the company aims to reduce reliance on imports and support the Atmanirbhar Bharat and Make in India initiatives. This development is expected to provide Indian companies and suppliers with access to advanced technology locally, fostering a self-reliant ecosystem for the industrial and white goods sectors.
Anish Agarwal, Director of Sterling Tools Limited, commented that the partnership represents an important step in localizing the production of latching relays. He highlighted the company's expansion beyond its automotive base to meet India's growing demand for advanced technology in the energy sector, which would drive innovation and improve efficiency.
A latching relay is an electromechanical switch that maintains its position without power applied to the coil. Unlike traditional relays, latching relays draw power only when they switch states, helping conserve energy and reduce operational costs.
Xiaohu Huang, Chairman of Zhejiang Meishuo Electric Technology Co., Ltd., noted that India’s industrial and consumer markets hold significant potential for growth. Through this partnership, both companies aim to bring high-quality solutions to meet India’s evolving industrial and consumer needs, while contributing to the country’s sustainability and self-reliance goals.
Sterling Tools, through Sterling Tech-Mobility Limited, intends to expand the local manufacturing of electrical components, systems, and relays. This initiative is designed to strengthen India’s industrial supply chain and reduce dependency on imports, positioning the partnership to benefit from emerging market opportunities and contribute to a sustainable future.