Sterling Tools Limited, India’s second-largest automotive fastener manufacturer, saw its shares surge nearly 3% on news of its strategic partnership with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd. (GLVAC YT), a Chinese company specializing in high-voltage components. Through its subsidiary, Sterling Tech-Mobility Limited, the company will invest approximately ₹40 crore to establish a new manufacturing facility in Bengaluru, dedicated to producing advanced High Voltage Direct Current (HVDC) contactors and relays. This partnership is part of Sterling Tools’ broader strategy to localize the production of key components for electric vehicles (EVs) and hybrid electric vehicles (HEVs) in India.
The collaboration is projected to generate ₹250 crore in revenue by FY30, catering to India’s expanding EV and HEV markets. HVDC contactors and relays are essential in controlling high-voltage electricity flow in EVs, ensuring safe operation and protection against electrical faults. These components also play a critical role in managing power circuits and preventing potential hazards, including fires or explosions.
Aligned with the Make in India and Atmanirbhar Bharat initiatives, this partnership reduces India’s reliance on imports and strengthens a self-reliant EV ecosystem for domestic Original Equipment Manufacturers (OEMs) and Tier-I companies. Sterling Tools’ commitment to advanced automotive technologies is expected to drive significant value in the Indian automotive sector, enhancing safety and operational efficiency in EV and HEV components.
Commenting on the collaboration, Anish Agarwal, Director of Sterling Tools, emphasized, “As the electric and hybrid vehicle markets continue to expand, it’s crucial to integrate the highest safety standards through advanced technological systems. This partnership enables us to contribute meaningfully to the Make in India initiative by making advanced HVDC contactors and relays more accessible for OEMs and Tier-I companies.”
As of 11:53 a.m., Sterling Tools shares were trading at ₹527.30 on the NSE, up 2.46%, as investors reacted positively to the company’s push toward localizing critical EV components and strengthening India’s position in the global EV supply chain.
