New Delhi: Diversified group Hero on Monday said it has entered the electronics segment with plans to invest Rs 500 crore in the next few years and has acquired majority stake in set top box maker Mybox Technologies.
It announced the formation of a new company, Hero Electronix, which will spearhead the group's activities in the segment.
Suman Kant Munjal, who has been named the chairman of the new company said, "Hero Electronix would 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".
"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," Mr Munjal said in a statement.
As its first strategic initiative, Hero Electronix will acquire a majority shareholding in Capital-based Mybox Technologies Pvt Ltd, a leading multi operator manufacturer of set top boxes in the country.
It did not disclose the financial details of the deal.
"Hero Electronix sees immense potential in Mybox and its management team. Using its core competence in hardware and embedded systems design, Mybox is strategically focusing on fulfilling the demand of digitisation in India, while simultaneously developing products for the world," Hero Group said in its statement.
Mybox is a venture recognised by the government and approved by Department of Scientific and Industrial Research.
The $5 billion Brijmohan Lall Munjal-led Hero Group has presence in over a dozen business verticals, with its two-wheeler firm Hero MotoCorp being the flagship.
India's electronic goods import grew by 14.85 per cent to $37.19 billion in 2014-15 from $32.38 billion in the previous fiscal. The sector accounts for over 8 per cent in the country's total imports.