We have covered this company earlier at
SYRMA SGS
Manufactures various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies/adapters, fiber optic assemblies, magnetic induction coils and RFID products, and other electronic products. The company is a part of Tandon Group with Sandeep Tandon as chairman of the company. Its manufacturing facilities are spread across Northern India (Bawal, Haryana, Manesar, Haryana, Baddi, Himachal Pradesh) and southern India – Chennai (Tamil Nadu), Bengaluru (Karnataka).
One of India’s Largest ESDM Company in the Non-Consumer Segment
300+ customers, 18 Facilities, 20+ exporting countries
with end to end capabilities and backward integration of PCB and components inhouse
Business verticals serving high growth industries
Four Dedicated R&D Facilities
1 in Germany & 3 in India
190 employees in RnD, 537 overall engineers
1800+ suppliers
Global certifications in place
Revenue splits
Opportunities and Growth Drivers
Government Initiatives
Capitalizing on government incentives such as PLI, MSIPS, ECMS, PM E-drive and EMC Tax incentives, infrastructure support
Growth of IoT & Smart Devices
IoT in industrial, automotive, consumer segments to drive customized solutions
Automotive IoT growth driven by connectivity, ADAS, personal UI, etc
Export Opportunities
Rising trend of supply chain diversification
India being favored as the global alternative as part of China + 1 strategy
Increasing outsourcing by OEMs
OEMs increasing reliance on ESDM players for cost efficiency, scalability, supply chain flexibility
Increasing focus area
Very very interesting chart on what SYRMA wants to do in coming time
RISKS
The company imports 60% of its material requirements, which exposes it to foreign exchange fluctuation risk. While part of the forex exposure is naturally hedged from exports (about 25% of the total revenue), the company takes three months forwards to cover part of the open exposure and is able to pass on the impact of foreign exchange fluctuation to customers to some extent, any major forex fluctuation can impact the margins.
Time to time changes in technology may impact business in short term
Intensive working capital nature of business may need consistent cash flows
Technicals
Discover more from ALPHA AFFAIRS
Subscribe to get the latest posts sent to your email.
ALPHA AFFAIRS 