Eyes Rs 250 crore revenue by FY30: Small-cap auto company signs MoU with South Korea’s Yongin for EV components facility!

This strategic agreement, expected to generate Rs 250 crore in business over the next 5 years, marks a crucial step in advancing the production of electric vehicles (EV) and electronic components within India.

Sterling Tools Limited (BSE: 530759) (NSE: STERTOOLS), the second largest automotive fastener manufacturer and, through its subsidiary, the leading manufacturer of Motor Control Units (MCUs) in India, has signed a Memorandum of Understanding (MoU) with South Korea’s, Yongin Electronics Company Ltd, a major supplier of components to the Hyundai Kia Motor Group

This strategic agreement, expected to generate Rs 250 crore in business over the next 5 years, marks a crucial step in advancing the production of electric vehicles (EV) and electronic components within India. To accelerate the production capacity, Sterling Tools Limited will set up a new greenfield manufacturing facility in the country.

As a key supplier of components, Yongin Electronics Company Ltd offers its technological expertise to India’s growing EV sector. This association strengthens Sterling’s EV component portfolio by increasing local value addition and backward integration into passive components, in line with the 'Atma Nirbhar Bharat' vision of the Government of India.

The MoU enhances Sterling’s capability to provide solutions for EV & Hybrid space, as well as other automotive applications, incorporating the latest technology from Yongin. This collaboration between Sterling and Yongin covers the entire portfolio of magnetic components required for various applications in India’s EV and electronics manufacturing growth.

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About Yongin Electronics Company Ltd

Yongin Electronics is a South Korean company incorporated in 1977 supplying to HKMC Group. The company designs and manufactures EV components like transformers, chokes, filters and other sub-components for the EV Industry. The company has operations in South Korea, Vietnam and China to cater to its OEM customer base.

About Sterling Tools Limited

Incorporated in 1979, we manufacture high tensile and premier cold forged hi-tensile fasteners catering to the passenger cars, two-wheelers, commercial vehicles, agri-equipment and construction equipment segments. As a dynamic company, it also ventured into sunrise sectors such as electric vehicles (EVs) to ensure robust value creation for stakeholders. The company’s client portfolio comprises leading OEMs in the domestic market and international markets.

Disclaimer: The article is for informational purposes only and not investment advice.