Notice of Signing an Agreement to Establish a Joint Venture in India -Expanding into the High-Growth Indian Market: Strategic Partnership with Leading ICT Distributor Rashi Peripherals Limited-
Restar Corporation (the “Company”) hereby announces that the Company has entered into agreements with Rashi Peripherals Limited (Headquarters: Mumbai, India; Managing Director: Kapal Suresh Pansari; "RASHI"), a leading specialized trading company of ICT (information and communication technology) products with 56 sales offices across India and listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), to establish a joint venture (the "JV") for developing semiconductor business in India, and will commence business operations through the JV from October 2026 (scheduled).
Details
Background of the JV Establishment The Indian semiconductor market is approximately 1.4 times larger than the Japanese market, driven by strong domestic demand, and is expected to maintain high growth potential going forward. Under large-scale policy support from the Indian government aimed at building a domestic semiconductor manufacturing ecosystem, industry-wide efforts by both public and private sectors to promote the semiconductor industry are accelerating. Additionally, amid the global trend of supply chain restructuring driven by geopolitical risks, India is attracting worldwide attention as a manufacturing and procurement partner. The Company will commence its business in India by establishing a joint venture with RASHI, which possesses robust sales infrastructure and an extensive customer base, to capture this growing market. RASHI, founded in 1989, is one of India's leading specialized trading companies for ICT products, handling a wide range of products from consumer devices to embedded systems, semiconductors, and enterprise solutions. With 56 sales offices, service centers, and logistics warehouses throughout India, the company has built an extensive distribution network. The company plays a central role in India's technology industry, partnering with global manufacturers worldwide and providing products and services to numerous channel partners. The Company will leverage RASHI's robust sales infrastructure, extensive customer base, deep market understanding, and thorough knowledge of business practices to achieve rapid and efficient entry into the Indian semiconductor market.
Overview of the JV RASHI will carve out its existing semiconductor business division and establish a wholly owned subsidiary. After completing the prescribed procedures and investment process, the Company plans to acquire an equity interest on October 1, 2026, and rename the newly established company as follows.
Headquartered in Bangalore, the center of India's semiconductor industry, the JV will leverage a network of five major city locations to develop nationwide business operations. The Company will participate with a 26% stake while utilizing RASHI's sales infrastructure, human resources, and customer network, enabling rapid and efficient entry into the Indian market.
Business Strategy of the JV The JV will commence full-scale sales activities for various semiconductors targeting the Indian market. The Company will leverage its strong line card (product portfolio) and provide expertise such as essential technical support (FAE) to meet customer needs. Additionally, the Company will promote cross-selling of the line cards held by both RASHI and the Company respectively.
The specific focus areas are as follows. 1) Industrial Equipment MarketWith semiconductor products, a strategic product for which the Company has newly acquired commercial rights in India, as the core, the Company will pursue the sensing solutions business for industrial equipment by combining them with RASHI's existing line card. 2) Automotive Market (for Tier 1 Suppliers) In the rapidly expanding Indian automotive market, the Company will promote solution proposals and cross-selling to Tier 1 suppliers, which are automotive equipment manufacturers.
Future Outlook The impact of this matter on the Company’s consolidated financial results for the fiscal year ending March 2027 is immaterial. Through the establishment of a joint venture via equity method investment, the Company will build a solid business foundation in the rapidly growing Indian market. The Company has set a medium-term business scale target exceeding 10 billion yen and will aim for further expansion. In the future, the Company will also expand into Eco-solutions, System Solutions, and the IT field, striving to increase the business scale of the entire group and enhance corporate value.
