RRP aims to build an integrated manufacturing value chain that spans from semiconductor packaging to fully assembled electronic products.
RRP Electronics has signed a memorandum of understanding (MoU) and a term sheet for the strategic acquisition of Vital Electronics, an established electronics manufacturing services (EMS) company. The move is aimed at expanding RRP’s manufacturing footprint beyond semiconductor packaging into complete electronic system manufacturing.
According to their long-term plans, RRP Electronics intends to acquire 100 per cent equity in Vital Electronics in four tranches. The company has a target to achieve 50 per cent ownership by March 2027. The complete acquisition can happen by March 2028. It all depends on the achievement of agreed milestones and receipt of regulatory approvals.
Following the acquisition, RRP plans to add and merge MS Vital Electronics with one of the listed entities within the RRP Group, pending the required corporate, statutory and regulatory approvals.
The proposed acquisition is expected to strengthen RRP Electronics’ outsourced semiconductor assembly and test (OSAT ) and assembly, testing, marking and packaging (ATMP) capabilities. By combining Vital Electronics’ EMS expertise with RRP’s semiconductor packaging operations, the company aims to build an integrated manufacturing value chain that spans from semiconductor packaging to fully assembled electronic products.
Vital Electronics provides end-to-end contract manufacturing services, including printed circuit board assembly (PCBA), surface mount technology (SMT), electromechanical assembly, concurrent engineering, strategic sourcing, testing, system integration, custom-designed packaging and complete box-build solutions.
The combination will enable semiconductor devices manufactured and packaged by RRP to be integrated onto printed circuit boards and converted into complete electronic systems for customers in defence, automotive, industrial, telecom, consumer electronics and other high-growth sectors.
The company currently sees revenue potential of ₹900 million in its order book over the next three years.
