Hind Rectifiers Limited, a prominent player in the electrical equipment sector, has announced the completion of a significant expansion and backward integration project at its Sinnar plant. The company revealed that the expanded facility became operational on September 29, marking a crucial milestone in its strategic growth plan.

Expansion Details

The expansion at the Sinnar plant focuses on manufacturing capabilities for three key products:

1. Continuously Transposed Conductor (CTC)
2. Enameled Paper Insulated Copper Conductor (EPICC)
3. Paper Insulated Copper Conductor (PICC)

This backward integration initiative aligns with Hind Rectifiers' previous commitments to enhance its manufacturing capabilities and streamline operations.

Operational Timeline

According to the company's official statement to the stock exchanges, commercial production at the expanded facility is expected to commence within 30 days from the date the plant was put to use. This swift transition from completion to production underscores the company's efficiency in implementing its expansion plans.

Strategic Benefits

The expansion and backward integration at the Sinnar plant are poised to bring several strategic advantages to Hind Rectifiers:

1. Enhanced Operational Efficiency: By integrating these manufacturing processes, the company aims to streamline its supply chain significantly.

2. Reduced External Dependence: The new capabilities will decrease Hind Rectifiers' reliance on external vendors for these critical components.

3. Improved Delivery Timelines: With in-house production of CTC, EPICC, and PICC, the company expects to ensure more timely delivery of its products to customers.

4. Cost Optimization: The backward integration is anticipated to optimize costs across the production process.

5. Margin Improvement: As a result of the above factors, Hind Rectifiers projects an improvement in its profit margins.

Management's Perspective

Meenakshi Anchlia, Company Secretary & Compliance Officer of Hind Rectifiers Limited, stated in the regulatory filing, "This backward integration is in line with the Company's commitment made in the past. This will help to enhance operational efficiency by streamlining the supply chain, reducing dependence on external vendors, ensuring timely delivery of products, strengthen Company's business, optimising cost and improving the margin."

The completion of this expansion project represents a significant step forward for Hind Rectifiers Limited, potentially positioning the company for improved performance and competitiveness in the electrical equipment market.

Hind Rectifiers Limited , a prominent player in the Indian electrical equipment sector, has made a significant move in its global expansion strategy. The company has received approval from the French Tribunal to acquire the running business, assets, and intellectual property of BeLink Solutions France for €1.00 million.

Acquisition Details

The Tribunal des Activités Économiques of Le Mans approved Hind Rectifiers' proposal, marking a crucial step in the company's international growth plans. The acquisition will be executed through a new subsidiary in France, with a unique ownership structure:

• Hind Rectifiers Limited will hold 100% of the preference shares
• 66% of the equity shares will be owned by Hind Rectifiers Limited
• The remaining 34% of equity shares will be held by Promoter Group Companies

Strategic Expansion

This acquisition aligns with Hind Rectifiers' board approval, which outlined plans for incorporating a subsidiary to facilitate global business expansion and explore new opportunities in international markets. The move into France represents a concrete step towards realizing these ambitions.

About BeLink Solutions

BeLink Solutions France operates in three key areas:

1. Robotics
2. Electronics Manufacturing Services (EMS)
3. Electronics Research and Development (R&D)

This acquisition is expected to enhance Hind Rectifiers' capabilities in these high-tech domains, potentially opening new avenues for growth and innovation.

Timeline and Next Steps

The possession of BeLink Solutions' assets and business is anticipated to occur upon the incorporation of the proposed subsidiary in France.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Hind Rectifiers has duly informed the stock exchanges about this significant development. The company has emphasized that BeLink Solutions is not a related party to Hind Rectifiers Limited, ensuring transparency in the transaction.

This strategic acquisition marks a pivotal moment for Hind Rectifiers as it seeks to strengthen its global footprint and diversify its technological capabilities. The move into robotics, EMS, and electronics R&D through BeLink Solutions could potentially open new revenue streams and enhance the company's competitive position in the international market.