Waaree Energies Limited, through its wholly owned subsidiary Waaree Power Private Limited, has entered into a Joint Venture Agreement with SmartenGrand Ltd. The JV aims to establish a semiconductor fabrication unit in India, focusing on manufacturing and supplying semiconductor products, including power application diodes. This strategic move signifies Waaree’s diversification into the advanced semiconductor manufacturing sector, leveraging technological expertise and market presence.
Strategic Joint Venture for Semiconductor Production
Waaree Energies Limited (the “Company”) announced today the formation of a significant joint venture aimed at bolstering India’s semiconductor manufacturing capabilities. Through its wholly owned subsidiary, Waaree Power Private Limited (“WPPL”), and in conjunction with Waaree Semicon Private Limited (also a subsidiary), the Company has entered into a Joint Venture Agreement with SmartenGrand Ltd (“SGL”). This collaboration marks a strategic expansion for Waaree Energies into the high-growth semiconductor market.
Scope and Objectives of the Joint Venture
The newly formed joint venture will focus on the critical business of manufacturing and supplying semiconductor products. Key areas of operation will include power application diodes and other related semiconductor components. A primary objective of the JV is to establish a state-of-the-art semiconductor fabrication unit within India, contributing to the nation’s “Make in India” initiative in this crucial sector. The venture intends to leverage SGL’s technological and design expertise alongside Waaree’s established infrastructure, financial strength, and market presence.
Ownership and Business Rationale
Under the terms of the agreement, upon meeting closing conditions, WPPL is set to hold 86.83% of Waaree Semicon Private Limited, while SGL will hold the remaining 13.17%. The equity capital for Waaree Semicon will be subscribed by the business parties based on valuation reports, with contributions potentially made in cash or kind. The rationale behind this venture is to offer improved and competitive semiconductor products to the market. The Board composition of the joint venture will reflect each party’s equity contribution, and key managerial persons will be appointed based on expertise, alongside customary commercial agreements.
Transaction Details
The transaction is explicitly stated not to fall within the ambit of related party transactions, as SGL is not related to Waaree’s promoter group or other group companies. Waaree Semicon is a newly incorporated entity yet to commence business operations. The parties anticipate that the JV will significantly enhance their competitive positioning by combining advanced technology with robust operational and market capabilities.
Source: BSE
