Vedanta Expands Footprint In Global Display Value Chain With Acquisition Of Japanese Major AvanStrate For $78 Million

Mining conglomerate Vedanta Ltd will acquire an additional 46.57 per cent stake in Japanese electronics display manufacturing company AvanStrate for 12.2 billion Japanese yen, or $78 million, the company said in an exchange filing.

"The board of directors of Vedanta Limited on Friday... have approved the acquisition of additional stake of 46.57 per cent in AvanStrate Inc (ASI) (an indirect subsidiary of the Company with 51.63 per cent holding) from HOYA Corporation, Japan through Cairn India Holdings Ltd (CIHL), a wholly-owned subsidiary of the company," Vedanta said in a filing to the BSE.

The Anil Agarwal-owned company checked into AvanStrate in 2017 by acquiring a 51.63 per cent stake for $158 million. Once it acquires Hoya's stake in AvanStrate, Vedanta's interest in the Japanese company will rise significantly to 98.2 per cent.

The acquisition is being done through Vedanta’s wholly-owned subsidiary, Cairn India Holdings Ltd (CIHL). The transaction is likely to be completed by the end of the current quarter.

The acquisition of AvanStrate aligns with the company’s vision of pivoting towards technology and diversifying into hi-tech manufacturing while expanding its presence in high-growth markets, Vedanta said.

Leveraging its expertise and resources, AvanStrate aims to strengthen Vedanta’s capabilities to support the burgeoning hi-tech electronics manufacturing industry in India and capitalise on the growing demand for electronic devices in India and globally, it added.

ASI headquartered in Tokyo, Japan, with production facilities in Taiwan and Korea, is a leading manufacturer of glass substrates primarily used in the production of electronic devices such as televisions, laptops, smartphones, tablets, wearables and other electronic displays.

In FY23, AvanStrate, which was incorporated in May 1991, reported a revenue of Rs 263 crore.

With AvanStrate’s expertise, Vedanta would be strategically positioned to establish India’s first integrated fab for display glass and panels, catering comprehensively to the fast-growing electronics manufacturing industry. Such a facility could elevate domestic value addition in electronics manufacturing, escalating it from the current 15 per cent to 60 per cent, the release said.