Sterling Tools zoomed 8.58% to Rs 365.65 after the company announced the signing of a memorandum of understanding (MoU) with South Korea's Yongin Electronics Company for setting up new greenfield manufacturing facility for EV components.
Yongin Electronics Company is a major supplier of components to the Hyundai Kia Motor Group. Yongin is the leading manufacturer for electronic components like transformers, AC/DC reactor, coil & choke, EMI filter board, DC link EMI filter, high current DC connector and metal ferrite cores and has participated in the development of Koreas electronics industry over the past 47 years.
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 vehicle (EV) and electronic components within India.
As a key supplier of components, Yongin Electronics Co., Ltd offers its technological expertise to the Indias growing EV sector. This association strengthens Sterlings EV component portfolio by increasing local value addition and backward integration into passive components.
The MoU enhances Sterlings 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 Indias EV and electronics manufacturing growth.
Anish Agarwal, Director from Sterling Tools, said, "This MoU demonstrates Sterlings commitment to developing the EV and Electronics ecosystem and contributing to 'Make In India'. We are one step closer to our goal of strengthening our presence and offerings as a provider of green energy solutions in the automotive industry."
Sterling Tools 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. The companys client portfolio comprises leading OEMs in the domestic market and international markets.
The company's consolidated net profit had declined 2.44% to Rs 13.58 crore despite a 11.61% rise in sales to Rs 231.95 crore in Q3 FY24 over Q3 FY23.
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