In a conversation with EFY’s Nitisha Dubey, Aimtron Group CEO Mukesh Vasani highlighted key manufacturing features and global expansion strategies.
Q. What milestones mark Aimtron Electronics’ growth since its founding?
A. Aimtron Electronics Manufacturing Company offers end-to-end solutions and
engineering and design services to a diverse customer base. The company was
founded in 2009, starting with contract and product manufacturing. In 2011, Aimtron
India was established to support the business in India. The company worked for a
critical client for a couple of years as an ODM and OEM. In 2014, Aimtron Electronics
began operating independently, offering complete turnkey and holistic solutions. Over
the past ten years, the company has grown significantly, serving local users and US
clients, with revenue reaching approximately Rs 1 billion. Recently, Aimtron went public
and got listed on the IPO, marking a major milestone in its journey.
Q. What unique offerings does Aimtron Electronics provide in various industries?
A. The four Ps: ‘product’, ‘process and infrastructure’, ‘promoter’, and ‘promotion
performance’, are what our company’ robust theoretical framework is based upon.
Product-wise, we specialise in all types of electronic controllers, which we call the
‘mother of all electronic industries’ because we handle product development and
design. For instance, we design controllers for MRI machines and medical devices. We
produce drone components and specialised electronics for defence and aerospace. Our
services include design support and optimisations for drones and electric vehicles,
focusing on payload management and flight performance. We also handle
manufacturing support, including tooling, plastics, and enclosures. Additionally, we
manufacture LED boards for the lighting industry. Serving diverse products and clients,
we are a key player in electronic system design and manufacturing (ESDM).
Q. What sets your company apart from others in the industry?
A. The primary USP is our slogan: ‘providing American quality on Indian soil.’ The
second key differentiator is our niche and global customer base. Thirdly, we embrace
Industry 4.0 with extensive automation and cutting-edge tools. When we started in
Gujarat in 2012-2013, we quickly rose to number six in technology in Hong Kong and
India. This was due to our advanced machinery, 3D capabilities, selective soldering
machines, and more. Additionally, our flexibility and transparency, inspired by American
business culture, ensure we deliver on our commitments.
Q. Do you source components locally in India or outsource them?
A. Most of our efforts align with the ‘Make in India’ campaign, benefiting from current
government support and numerous PLI schemes and subsidies. While we still have
some dependency on Hong Kong and China, we aim to shift more infrastructure to India
with government initiatives. Around 30-40% of our operations are outside India, but we
are working towards greater self-reliance.
Q. Can you detail about your manufacturing plants, machines, and investments?
A. We have two advanced manufacturing plants: one in Gujarat, our main plant in Asia,
and another in Whitefield, Bengaluru. Currently, we have three SMT lines and one
assembly line. We operate a Fuji platform with a cutting-edge Fuji SMT line, a Japanese
machine we installed about a year ago. Another new assembly line is expected to be
operational in July this year. In Bengaluru, we also have an advanced SMT line set up
post-COVID., Operating under a different business model, we also have five assembly
lines in India and nine in the US. Every five to seven years, we update our machines to
stay ahead of technology trends and meet the needs of our global client base.
Q. What are the areas and capabilities of your manufacturing facilities in Gujarat and Bengaluru?
A. Globally, we have a total facility space of approximately 19,503 square metres
(210,000 square feet). In Bengaluru, we have a cleanroom facility in Whitefield, covering
around 929 square metres (10,000 square feet). This facility includes engineering and
manufacturing boards, primarily for handling secure government defence work with
clients such as ISRO, BEL, and HAL. Our Gujarat factory is a four-storey building,
including a mezzanine, spanning about 5,574 to 6,501 square metres (60,000 to 70,000
square feet). In India, we have a local office in Ahmedabad, which also serves as our
design centre, and another office in Vadodara, covering almost 3712 square metres
(4,000 square feet). Our goal is to expand further within the next three to five years.
Q. What is the investment cost for Aimtron’s EMS lines?
A. EMS businesses are costly, with each line costing about 120 to 150 million rupees,
translating to an investment of roughly 1.5 to 2 million dollars per line. For our five lines,
we have invested around Rs 700 to 800 million besides owning all our facilities. In
Bengaluru’s Whitefield, we have put in about Rs 250 million, including the building and
everything else. In Gujarat, we have approximately 140 employees and in Bengaluru,
we have nearly 30 to 35 employees.
Q. Can you share more about your new SMT line and facility?
A. Our new production line will be a fully automated, Fuji-like robotic line designed for
high-speed manufacturing, such as building cell phones. This new line includes an
automatic loader and a PCB clone washer to remove dust. After cleaning, it proceeds to
the screen printing and paste printing stages. Next is a 3D inspection to ensure all paste
applications are accurate, checking for any rejections before moving to the pick-and-place machine. After the pick-and-place process, the boards enter a nitrogen reflow
oven, which provides a superior quality environment for the reflow process compared to
a standard oven. Following the reflow, we have another 3D automated optical
inspection (AOI) at both ends, as 3D inspections are now essential for quality
assurance. Our highly trained staff, certified through IPC training in Bengaluru last year,
where we ranked number one, will oversee the operation. Additionally, we run the
Aimtron Foundation, which focuses on skill development. The new line offers significant
benefits with its five modules, capable of handling 150,000 to 200,000 components per
hour, depending on the part sizes and types. This new line will be in Gujarat,
complementing our existing three lines. We also have an R&D-focused facility in
Bengaluru.
Q. Why did you choose Gujarat for the new facility instead of Bengaluru?
A. Gujarat, especially the Ahmedabad area, is rapidly becoming a tech hub, similar to
Bengaluru, with many tech companies establishing themselves there. Our goal is to
have facilities in both locations. Gujarat will cater to cost-sensitive customers, while
Bengaluru will handle high-tech, high-mix projects, including government and defence
contracts allowing effective balance in our operations. We are also considering the
aerospace park in Bengaluru for future expansion.
Q. Which states have most of your clients?
A. We have many clients in the southern states, and our presence extends across India.
We have a high concentration of customers in Maharashtra and a significant number in
Gujarat, although they are more spread out there.
Q. How many products are manufactured daily and what is the delivery time to customers?
A. It depends on our client base and product, but typically, once we have a kit ready, the
turnaround time ranges from two to six weeks. Small NRI or MPI prototypes usually take
two weeks, while larger projects can take up to six weeks.
Q. What are your payment terms with customers and suppliers?
A. Our customers pay us within 30 to 90 days. We pay our suppliers within 30 to 45
days, sometimes within seven days if they offer down payment terms.
Q. How was last year’s fiscal growth, and what are your expectations for future?
A. As a publicly listed company, we must be cautious about disclosing certain
information. Last year, we achieved a 36% growth compared to the previous year,
which was even higher than the year before. This year’s results will be available soon.
However, after our year’s results, we will hold an investor call to share our plans. While
EMS remains our primary focus, ESDM is also a key area. We have many ideas and
growth strategies, which we will share eventually.
