Centum Frequency join hands with Rakon

Bangalore: The Bangalore-based Centum Frequency Products Pvt Ltd (CFPL), a wholly-owned subsidiary of Centum Electronics Ltd, has signed a joint venture agreement with the New Zealand-based multinational Rakon Ltd offering 49 per cent stake in the new venture to Rakon, which has invested $6 million to acquire stake in the newly-formed company Centum Rakon.

According to Mr Apparao Mallavarapu, Managing Director, Centum Electronics, Rakon will transfer its technology for OCXO, a high-end oscillator used in telecom industry and this will add to Centum’s current portfolio of oscillators to make it one of the few companies in the world to have the technology to manufacture OCXOs. The joint venture has projected sales of Rs 100 crore in the next three years, with respective exclusive marketing rights for the global and Indian markets.

The Rs 200 crore Centum Electronics, which had an EMS and products business, will transfer its products business worth Rs 20 crore to the joint venture.

The $140 million Rakon is a world leader in the development of frequency control solutions for wide range of applications.