The company is one of the leading fully integrated electronic manufacturing services companies with end-to-end capabilities in delivering box build solutions in India in terms of revenue in Fiscal 2022 (source: F&S Report), with a focus on high value precision engineered products. Through a unique global delivery model), they provide a full stack product and solution suite, right from printed circuit board design and assembly to end-to-end box build of electronic systems, to certain global original equipment manufacturers. Their other capabilities include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics and injection molded plastics.
Strengths And Risks
+ End-to-end Solution Provider:: Through their end-to-end capabilities, they help their customers achieve reduced manufacturing costs, improved supply chain management and reduced inventory obsolescence.
+ Diversified Product Portfolio: : Their capabilities include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics and end-to-end box build of electronic systems.
+ Diversified Client Base: : They have increased key customer base across industries over time from 54 customers in Fiscal 2020 to 62 customers in Fiscal 2021, to 81 customers in Fiscal 2022, to minimise key client concentration risk. The end-use industries include a mix of established and long product lifecycle industries, such as industrial, mobility and medical devices and high growth sunrise industries, such as solar, electric vehicles and hydrogen in the clean energy sector and digital infrastructure in the communications sector.
+ Strong Customer Relationships: : Some of their key customers include Kyosan India Private Limited, Zonar Systems Inc, Collins Aerospace, e-Infochips Private Limited, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation, with whom they have relationships for more than seven years.
+ Recognition: : They have been recognized by their customers with various awards including “Best Supplier Award for demonstrated sustained performance” from Collins Aerospace, Bengaluru in 2019 and “Supplier Excellence Award for Strategic Partnership” from Faiveley Transport Rail Technologies India Private Limited, a Wabtec Company in 2018
- Operational Risk: : Their manufacturing facilities are critical to business. Any disruption in manufacturing facilities can have adverse effects on business, operations and financial condition.
- Supply Risk: :
They mainly source raw materials, including integrated circuits, sensors and transistors, from certain suppliers, any increase in cost or supply chain disruption can impact business.
- Key Client Risk: : They are dependent on certain customers for a portion of revenues. Loss of relationship with any of these customers or a reduction in their demand can impact revenue.
- Competition: : They face significant competition, and risk due to rapid technological change, development of new products and their rapid obsolescence, evolving industry standards and significant price erosion over the life of a product.
- Pending Litigations: : Company has outstanding litigation against our Company, Promoters, Directors and Subsidiaries. An adverse outcome can impact reputation, business and revenue.
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