Is selecting the right machines critical for your manufacturing line? What factors determine the best fit for an EMS provider? Anil Kumar H. of HLTronics, in a discussion with EFY’s Nitisha, highlights the importance of deploying brand-new machines and offers insights into his business model and customer selection criteria.
Q. What does HLTronics do, and what are your core product offerings?
A. HLTronics is an Electronics Manufacturing Services (EMS) provider based in Bengaluru. We specialise in contract manufacturing for various sectors with a focus on high-quality PCB assembly. Our facility features a fully automated SMT line with advanced equipment like the Japanese FUJI AMX3C pick-and-place machine and a Taiwanese TRI optical inspection machine. In addition to manufacturing, we also provide end-to-end product development. If a client has an idea or concept, our in-house engineering team helps turn it into a working prototype and eventually supports the journey to mass production.
Q. Who is your target customer base?
A. We are open to working with any client requiring electronics manufacturing. However, our largest clientele currently comes from the automotive industry. We also work with medical device companies and focus heavily on industrial IoT applications. In fact, we are developing our own industrial IoT product to support process monitoring across factories and plants.
Q. Do you consider yourself an Independent Design House or an ODM?
A. We see ourselves as falling somewhere between the two. While we offer design and development services, we do not own the product IP. Our role is to help the customer build their idea and bring it to life through manufacturing, making us more of an enabler than an owner of the end product.
Q. Where is your manufacturing plant located, and what kind of machines do you use?
A. Our manufacturing plant is located in South Bengaluru, specifically in Banashankari 6th Stage. The facility is equipped with high-end equipment, including a FUJI AMX3C pick-and-place machine, a TRI AOI machine for optical inspection, a 10-zone reflow oven from JTU, and an automated screen printer from G-Star. We have also placed an order for a wave soldering machine from an Indian manufacturer, which we’re evaluating against Japanese and Taiwanese equipment to assess quality and performance.
Q. Do you prefer new or second-hand machinery for your operations?
A. In our current facility, all machines are brand new. From my previous experience in Australia, I have worked with second-hand machines. While they reduce upfront costs, the long-term operating costs can be significant. Used machines can be unreliable unless their history is well known, and finding spare parts becomes difficult as models age. We chose new equipment because it ensures operational efficiency, better support from manufacturers, and minimises production delays.
Q. Why did you choose Japanese and Taiwanese brands over Chinese alternatives?
A. We consciously decided to avoid Chinese machines, despite their lower cost, because many defence and medical projects do not permit Chinese-made equipment. Japanese brands, particularly FUJI, offer superior reliability, ease of operation, and excellent technical support. I’ve worked with machines from the US, Samsung, and FUJI, and in my experience, the Japanese equipment outperforms in terms of uptime and user-friendliness.
Q. Do you manufacture PCBs or just handle assembly?
A. We do not manufacture PCBs ourselves. Instead, we outsource the PCB fabrication to trusted vendors while handling the assembly in-house. We purchase the components, receive the bare PCBs, assemble them, and conduct quality tests. Additionally, we offer box-building services for customers who need fully finished products.
Q. What is your business model and customer selection criteria?
A. Our business is built on a foundation of quality and traceability. Every step, from sourcing components to final assembly, is documented. Our ideal customers are those who value quality and process adherence over cost. Although low-cost EMS companies using Chinese machines are competitive on price, we focus on reliability and cater to sectors like medical, defence, and automotive, where quality cannot be compromised.
Q. How do you ensure consistency and reliability in large production runs?
A. We perform automatic optical inspection (AOI) on every assembled board. We also ensure the bare PCBs we receive undergo necessary tests, such as flying probe testing. All components are sourced from authorised distributors to avoid counterfeits. Each item received is tagged with a docket that ensures traceability. We maintain physical inspection protocols and generate quality certificates for every batch before packaging.
Q. Is your team primarily technical, or do you also have sales personnel?
A. Our team is predominantly technical, comprising about 95% of our members. Most members hold diplomas or engineering degrees. Our CEO and I have extensive technical backgrounds with a Bachelor’s and a Master’s in Engineering. We also have a separate marketing team that handles our business outreach and digital presence.
Q. What are your hiring standards for technical roles?
A. We typically hire diploma holders for SMT machine operation roles and require a minimum secondary education for manual assembly tasks. For engineering roles, a degree in engineering is mandatory. We run a three-month internship program to evaluate fresh graduates before offering full-time roles. This allows us to assess skills while giving candidates exposure to real-world manufacturing environments.
Q. Do you offer training or workshops for academic institutions?
A. Yes, we are in talks with one university to offer a trial internship program for seventh and eighth-semester students. With the new VTU regulation mandating industry internships, we see this as an excellent opportunity to encourage students to consider electronics as a viable career, rather than defaulting to IT.
Q. Can you support both prototype and mass production volumes?
A. Absolutely. We support clients needing just two boards and those requiring thousands of units per month. Our processes are flexible enough to handle both low and high volumes efficiently.
Q. Do you prefer working with established companies or startups?
A. We welcome both. We evaluate companies based on their commitment to quality and structured processes, not on their size. Many startups we’ve worked with have highly innovative products and benefit significantly from our early-stage design feedback, which ensures manufacturability and cost-efficiency during scale-up.
Q. What are your payment terms?
A. Our standard payment model is 50% upfront and 50% before dispatch. For regular clients, we offer a 30-day credit period. We adjust terms based on the relationship and mutual trust with the client.
Q. What is your typical lead time for complex PCB assemblies?
A. Our internal assembly process is completed within seven days once materials are in-house. Most delays stem from component procurement and PCB fabrication, which can take three to four weeks, depending on availability.
Q. What certifications do you hold?
A. We are ISO 9001 certified and are in the process of obtaining Z certification and IPC certification for our core team. IPC certification involves a six-month training and assessment program that all our employees will undergo to enhance quality and industry compliance.
Q. Are your components sourced locally or internationally?
A. Most SMT components are sourced internationally, as India’s local manufacturing in this area is still developing. We purchase from suppliers in the US, Germany, and China. For mechanical parts and now PCBs, we have shifted sourcing to Indian vendors as local options have improved.
Q. Do you assist clients with component sourcing, and how do you manage risks?
A. Yes, we help clients source components. Depending on the project, we can provide either fully traceable branded parts or more cost-effective alternatives. We manage risk by sourcing only from authorised distributors or directly from reputable manufacturers, ensuring accountability.
Q. Do you offer product testing and validation services?
A. We offer testing based on customer requirements. Some clients prefer to conduct their own validation and do not share test protocols. However, if testing kits and instructions are provided, we carry out the required procedures. Boards are always AOI-inspected, and functional testing is done where applicable.
Q. How do you protect OEM intellectual property?
A. We operate strictly under NDA agreements. All designs and related information are kept confidential. Even when we perform design reviews or suggest changes for manufacturability, we make no claims over the IP. The ownership remains entirely with the client.
Q. What challenges do you face in the industry?
A. The biggest challenges are workforce availability and component sourcing. Electronics engineering talent is scarce in India, and importing components comes with customs volatility and pricing unpredictability. Also, the Indian market is very price-sensitive, which can make selling high-quality solutions challenging.
Q. How do you manage e-waste and environmental responsibility?
A. Our waste generation is minimal since we’re primarily an assembler. However, whatever e-waste we do produce, metal leads and PCB frames are responsibly disposed of through a certified partner. We are in the process of formalising this partnership for regular collection and disposal.
Q. Do you offer turnkey solutions?
A. Yes, we offer complete turnkey solutions that include design, prototyping, assembly, testing, and logistics. Several companies currently use us as their single vendor from concept to product rollout.
Q. Do you operate as an Original Design Manufacturer or purely an EMS provider?
A. We operate across the full spectrum, from design and engineering to manufacturing. Our capabilities include an in-house engineering team and our own EMS (Electronics Manufacturing Services) facility. Currently, we’re handling six projects. Out of these, two were designed internally by our team, while the remaining four are being executed as job work. Our approach is flexible: if a customer has only a concept, we help transform it into a fully developed product and then support them through the manufacturing process. On the other hand, if they already have a design, we conduct a thorough design review to ensure it’s optimised for manufacturing. If manufacturability has already been validated, we proceed with job work based on their existing design.
Q. How flexible are you when customers request design changes during production?
A. We are very accommodating when it comes to design changes. In our experience, no product remains the same from prototype to final production. We support multiple iterations and provide feedback to make designs more production-friendly. This ensures the final product is both functional and efficient to manufacture.
Q. Can you tell me more about the type of designs your team specialises in?
A. We have a full-fledged engineering team with in-house electronics engineers, mechanical engineers, data scientists, and software developers for both front-end and back-end development. Our team has developed a wide range of products, including industrial IoT-based devices with in-house dashboards and monitoring portals. We’re also working with toy manufacturing companies to develop electronic toys. One of our current projects includes an AI-based toy that gives real-time feedback. Additionally, we are developing a visual aid product that uses an AI-based vision system to assist visually impaired individuals.
Q. Do you have an in-house design team, or do you collaborate with external designers for certain projects?
A. We have a complete internal design team and manage nearly everything in-house. Only in rare cases, when we encounter highly specialised requirements like complex power electronics and lack the necessary expertise, do we consult external experts for specific inputs. However, the actual design is still done internally.
Q. How would you describe your design philosophy or approach to creating new products?
A. Our design philosophy is rooted in ‘Design for Manufacturability.’ Unlike many design firms that separate product design and manufacturing, we integrate both from the start. This reduces iteration cycles and ensures the design is production-ready from day one. We also emphasise sustainability and aim to minimise our environmental impact, particularly in areas involving monitoring and automation. Additionally, we make conscious efforts to source components and services locally whenever possible, reducing dependency on international suppliers. Only when necessary, such as for specific ICs or components unavailable in India, do we look abroad. Economic factors also play a role, but local sourcing remains a priority.
Q. What is the process your team follows from conceptual design to finished product?
A. Our process begins with requirement capture, which includes several meetings with the client to understand their expectations. Based on this, we create a block diagram for the hardware, a flowchart for the software, and prepare initial component and enclosure options. Depending on whether the client is focused on features or budget, we propose suitable ICs and components. We then conduct a design review to finalise specifications and pricing trade-offs. Once approved, we proceed to schematic development, PCB layout (with dimensional constraints in mind), and another design review. After the electronics are finalised, we move to mechanical design and conduct another review. At this stage, we develop 5–10 prototypes, which are tested in the field by the client. Based on their feedback, we revise the design and proceed to a pre-production run of around 300–500 units, which we consider a critical step. Final adjustments are made before we move to full-scale production.
Q. How do you ensure that the design meets the specific needs of your customer?
A. We involve the customer at every key stage of the process. From specification capture and component selection to mechanical design and layout, we conduct multiple review meetings to align the product with the customer’s expectations. This collaborative approach ensures that the end product meets their exact requirements.
Q. Can you describe the role of your R&D team in the design process?
A. Our R&D and design teams function as one. Our CRMs, who also act as business development associates, are the first point of contact. They gather requirements and coordinate with our R&D heads to define the overall product scope. The project is then broken into modules, with each module assigned to specialists in hardware, embedded systems, mechanical design, or software. We often reuse proven modules from past projects to speed up development and ensure reliability. Initial mechanical prototypes are usually 3D-printed to validate fit and finish before integration.
Q. How does the R&D team collaborate with the design team to develop innovative solutions?
A. Since our R&D and design functions are integrated, the innovation process is highly collaborative. Our team works as a cohesive unit from ideation to execution, which helps us respond quickly to new challenges and develop solutions efficiently.
Q. How important is your website and digital marketing? What role do they play in your business today?
A. In our case, the website hasn’t been a major driver of business. Simply having a website without strategic marketing doesn’t yield significant results. Platforms like IndiaMART have helped to some extent, but most of our business has come from organic networking and referrals. In our industry, the website is more of a support tool than the first point of contact.
Q. Are the designs you create specifically tailored for EMS, or do you offer design services to other industries as well?
A. We do both. In some cases, we provide design as a standalone service and transfer full intellectual property rights to the client. They are free to manufacture it elsewhere. In other situations, we offer a combined package where design costs are amortised across manufacturing volumes.
Q. Do you offer any post-design support, such as prototyping or testing?
A. Yes, absolutely. We provide complete prototyping and testing support, including in-field validation with clients before moving to production.
Q. How do you handle customer feedback and integrate it into future designs?
A. Customer feedback is vital to our process. Since we are deeply involved in each project, we may miss specific external perspectives. That is why we value customer input; it shapes our understanding and often leads to better design decisions. We take every piece of constructive feedback seriously and incorporate it into our improvements.
Q. What are your future plans for growth and expansion?
A. We plan to move into a larger facility soon, applying for industrial space through KIDB. Beyond assembly, we aim to enter component manufacturing, taking advantage of central government incentives to boost domestic production. This vertical integration will strengthen our supply chain and reduce dependency on overseas vendors.
Q. What was your recent fiscal performance, and what are your growth projections?
A. We officially began operations in September 2024, so our first fiscal year was essentially preparatory with minimal revenue. For this financial year, we are targeting ₹50 million in revenue, with an expected 35–40% growth in subsequent years as operations and marketing scale up.
Q. What is your marketing strategy moving forward?
A. Our marketing approach is focused on Indiamart, LinkedIn, and leveraging client referrals. We continually upgrade our digital presence and invest in online visibility. Word-of-mouth continues to be our strongest asset, supported by the technical quality and reliability of our work.
