Hero Electronix’s Tessolve Adds to End-to-End Engineering Capabilities with Two Acquisitions

Hero Electronix, a part of the $5 bn Hero Group, announced the acquisition of two businesses – Malaysia’s Spectrum Integrated Technologies Sdn Bhd and the test lab business of Singapore’s Lynxemi Pte. The acquisitions were made through Tessolve, a Hero Electronix Venture and a leading provider of engineering services. Hero Electronix and its group companies have a planned investment outlay of Rs. 1,000 – 1,200 crore by 2022, aimed at building businesses in the advanced technologies and electronics engineering space. Hero Electronix’s revenue at the end of FY 2017 stood at Rs. 600 crores; Tessolve was a key contributor growing at 40% y-o-y.

Hero Electronix and Tessolve have laid strong emphasis on diversification, moving from offering semiconductor test engineering services to becoming an end-to-end solutions provider. With these two acquisitions, and the addition of TES Europe’s India embedded systems business in 2016, Tessolve is now strongly positioned as a leading end-to-end semiconductor engineering solutions provider – from chip design, test and PCB engineering through embedded systems development. Tessolve plans to continue investing, particularly in physical infrastructure, to continue delivering more value to its customers.

Spectrum Integrated Technologies operates a Printed Circuit Board (PCB) fabrication unit in Johor Bahru, Malaysia. A one-stop solution for high-mix, low-to-mid volume, printed circuit boards, Spectrum offers a wide variety of PCB manufacturing services. This adds to Tessolve’s capability in PCB design to offer turnkey solutions to its customers.

Lynxemi operates a test facility supporting customers in new product test development to low volume production of semiconductor chips. The lab is strategically located in Singapore, and adds to Tessolve’s ability to support its global semiconductor customers who are expanding their engineering presence in Asia.

Ujjwal Munjal, Founder-Director, Hero Electronix, added, “Hero Electronix’s partnership with Tessolve, a world leader in semiconductor test engineering services, began last year. During the past 18 months we have added strategic capabilities through the embedded acquisition last year and the two latest additions in PCB fabrication and test lab which allow us to work more closely with our customers as their strategic partner.”

“The association with Hero Electronix has helped Tessolve leverage its full potential. Our goal with these acquisitions is to fill gaps that will help us bring a more complete solution to our customers which includes engineering capabilities and strategic infrastructure. You need an ecosystem to truly bring value and each investment we make further helps build that out,” said P. Raja Manickam, CEO & Founder, Tessolve.

Hero Electronix’s other acquisition includes MyBox Technologies, which was added in June 2015. MyBox Technologies is the largest multi-operator manufacturer of digital set-top boxes in the country. Since acquisition, it has further strengthened its position in the rapidly growing set-top box market in India. The company has grown its revenues over 10 times since the partnership with Hero Electronix.