RRP Electronics Limited signs a memorandum of understanding and a term sheet to acquire 100% of Vital Electronics Private Limited, an electronics manufacturing services company. The proposed transaction is expected to add about ₹90 crore to RRP Electronics’ order book and strengthens its semiconductor and electronics manufacturing footprint in India. RRP currently focuses on outsourced semiconductor assembly and testing (OSAT) and on assembly, testing, marking and packaging (ATMP). The acquisition is intended to move the group beyond semiconductor packaging into the production of complete electronic systems.
Vital Electronics provides end-to-end contract manufacturing services, including printed circuit board assembly, surface-mount technology, electromechanical assembly, product testing, system integration, strategic sourcing, concurrent engineering, customised packaging and box-build solutions. Together, the companies plan to create an integrated manufacturing value chain from semiconductor packaging to fully assembled electronic products. The combined capabilities are expected to support customers across sectors such as defence, automotive, industrial, telecom and consumer electronics.
RRP plans to acquire Vital Electronics’ equity in four tranches, targeting a 50% stake by March 2027 and completion by March 2028, subject to agreed milestones and regulatory approvals. After completion, RRP intends to integrate and merge Vital Electronics with one of its listed entities, subject to required corporate, statutory and regulatory clearances.
