Lacking domestic manufacturing in India, supply chain woes, costs, and tight deadlines are the biggest challenges of the EMS industry. By tackling these, can customers be satisfied at the same time? LeePra Technologies’ Pravithlal Panniyodan unveils all the answers to EFY’s Nitisha Dubey.
Q. What is Leepra Technologies’ core focus in their PCB assembly process?
A. We specialise in printed circuit board (PCB) assemblies, sourcing components based on customer needs or inputs. From procurement to testing and packaging, we handle the entire assembly process. Our primary focus is surface mount technology (SMT), where we can assemble up to 400,000 components per hour. We use robotic and 3D automated optical inspection (AOI) machines for precision. In addition to PCB assembly, we provide our customers with wire harnessing and mechanical integration. This is done in-house at both our Mysuru and Vadodara units. After completing the wire or PCB assembly, we integrate everything into one unit and test it thoroughly.
Q. What percentage of components does Leepra Technologies import, and from which countries?
A. Regarding procurement, around 70 to 80% of our components are imported from the US and China. However, we source PCBs, transformers, and mechanical assemblies from within India.
Q. What industries does Leepra Technologies serve, and where it exports?
A. We serve specific customers through exports, with 60% of our business going to Germany and the US. Additionally, 55% of our business is focused on the automotive industry, while the remaining portion serves industrial electronics, medical, and some defence sectors.
Q. How does Leepra Technologies ensure product quality throughout the manufacturing process?
A. We procure components exclusively from authorised dealers or manufacturers. Upon receipt, each item undergoes a thorough inspection process, verified against the datasheet or relevant documentation. The components are sent to storage once our incoming quality (IQ) check is completed. This procedure is followed for all components, including PCBs, mechanical parts, wire harnesses, and soldering creams. Only after passing inspection do they proceed to storage.
Q. What is the production capacity of your Mysuru and Vadodara facilities?
A. Our Mysuru facility spans around 1393.55 square metres (15,000 square feet) and is equipped with complete SMT lines. We handle everything from laser marking for traceability to screen printing, component placement, and reflow, concluding with AOI inspection. We can assemble up to 140,000 components per hour. The process is similar across our other facilities, including Vadodara, though the machines differ by brand. In Vadodara, we use Advanced Surface Mount (ASM) pick-and-place machines, while Mysuru uses Fuji and Panasonic pick-and-place machines. Despite these variations in equipment, both facilities offer the same capacity and capability, ensuring consistent assembly quality and throughput across both locations. We have two SMT lines in Mysuru, while Vadodara has only one, established at the end of 2022.
Q. What are the key challenges the electronics manufacturing services (EMS) industry faces?
A. There are time delays, and commercial factors like high freight charges and customs duties can increase costs. Therefore, we always check if the components are available in India. Manufacturing locally in two weeks can take up to six weeks when importing. This delay impacts our supply chain, and when providing quotations, we often wait for cost estimates from suppliers in the US or China. Sometimes, we source components online. Even with distributors, they may need to import and hold the stock for us, leading to a two- to three-week lead time.
Q. What differences have you observed between international vendors and Indian vendors?
A. The manufacturing time for PCBs typically ranges from four to six days, whether sourced from India or China. However, it can take an additional week to reach our facility when importing from China, sometimes even longer due to customs formalities. In contrast, sourcing from within India, such as from Gujarat, takes only about a day for delivery. This is a significant difference. The challenge arises with complex or technically demanding boards, such as blind or buried PCBs. These are difficult to manufacture in India, so we often rely on suppliers from China or Taiwan for these specialised boards.
Q. What are the key sourcing locations for components and PCBs in India?
A. Our main procurement hubs are Karnataka, Maharashtra, and Gujarat. We source most of our components—around 80%—from Karnataka. But for PCBs, we primarily rely on suppliers from Gujarat, though we also procure some PCBs from Karnataka. Cost-wise, there are advantages, and the lead time is significantly faster.
Q. How do supply chain delays impact prototype development and delivery?
A. When providing a quote, we often need to obtain quotes from others, including dealers, which delays procurement and adds pressure once manufacturing begins. Suppose the supply chain is based in India. In that case, it typically takes about a week for materials to arrive, giving us or the customer enough time for manufacturing, testing, and other processes. However, when developing prototypes, we may receive components late, and then we are required to deliver assemblies the very next day.
Q. How do you tackle lead time issues while managing the supply chain?
A. Obtaining components from abroad can sometimes lead to delays, such as getting stuck in customs or facing freight issues. The customer or supplier informs us of the lead time or stock availability when providing a quote. If they do not have stock, it can take about two weeks from shipment, leaving us with one to two weeks for manufacturing. We generally have three to four weeks for procurement, manufacturing, and assembly. However, any procurement, shipment, or freight delays can result in delivery issues.
Q. When these issues occur, how do you deal with it and ensure timely delivery?
A. We maintain a transparent system by sharing comprehensive order details with our customers, including vendor information and estimated delivery times. If any issues arise, such as out-of-stock components or backorders, we promptly notify the customer and discuss possible solutions, including sourcing from alternative suppliers. While minor delays (typically one to three days) may occur, we ensure that orders are placed immediately upon receiving the customer’s final purchase order or documents. We then provide an estimated delivery date. Once all components are received, we allocate sufficient time for production and testing, followed by creating an updated delivery schedule. If any production or delivery schedule changes happen, we notify the customer and make necessary adjustments accordingly.
Additionally, we have a signed contract with both customers and vendors that specifies a completion date for the purchase order, with penalties for late delivery. This ensures accountability and encourages timely processing from all parties involved.
Q. What role can the government play in addressing supply chain and delivery time challenges?
A. The key issue lies in the supply chain, particularly components and semiconductors. Support from authorised stockists or manufacturers within India would greatly benefit the electronics industry by speeding up production. If components are readily available, we can manufacture them quickly and deliver them to customers or vendors, leading to faster growth. Currently, there is no domestic manufacturing in India; there are only dealers. Sometimes, they may be out of stock or need to import components, which causes delays. These challenges could be avoided if authorised stockists based in India existed.
Q. What makes your offerings different from competitors?
A. We have an artificial intelligence (AI)-based, 3D AOI machine in our SMT line, capable of inspecting components using 3D imaging technology. Since it is AI-driven, the system can retrieve data from the server to compare and verify the accuracy of our assemblies, ensuring components are correctly placed and aligned. I said earlier that we also handle mechanical integration and design. This process involves designing the mechanical components, obtaining samples from the mechanical vendors, and inspecting them. Once we receive customer approval, mass production and mechanical integration begin. This integration includes various aspects such as enclosures, CNC operations, wire harnessing, and PCB assembly, which are processed internally.
Q. What role does your wire harnessing facility play in meeting the growing demand for PCB integration?
A. Nearly all PCBs require wire harnesses for integration, as they are not directly connected. As the PCB market grows, so does the demand for wire harnesses. In 2021, following the COVID-19 pandemic, we launched our wire harnessing facility, which is now fully operational. We also export them. Our skilled team conducts thorough analysis and performs 100% testing on every assembly before sending it out, ensuring the highest quality.
Q. How does 3D AOI compare to traditional manual inspection methods?
A. We used a 2D AOI system until about two months ago when we upgraded to the 3D model. The 2D system inspected components from the top, verifying presence and values, and had some capability to detect solderability issues, though not reliably. The 3D AOI inspects components from all angles, allowing for a more comprehensive check and effectively identifying solderability problems. If an issue is found, the system provides real-time feedback as part of an inline process, enabling communication to earlier stages like pick-and-place. Unlike the 2D AOI, which required manual verification for minor problems, the 3D system generates detailed reports and offers superior detection and feedback.
Q. Which regions contribute most to your orders and export markets?
A. In Mysuru, most of our orders come from Karnataka, while in Tamil Nadu, we receive orders from across the entire region. We serve Karnataka, Tamil Nadu, and Kerala in this area. At our Vadodara facility, we primarily receive orders from Gujarat and Maharashtra. Although we do not export high volumes of different products, exports account for 60% of our business value, with key markets being the US and Germany.
Q. What is the standard payment cycle for clients?
A. The payment cycle varies. We sometimes receive advance payments, while others offer a maximum credit period of 30 days.
Q. What is the status of your facility expansion plan?
A. We have an upcoming expansion plan in Mysuru, which will double the current size. Although the details are not fully finalised, we are actively working on it. We are collaborating with automotive customers and have a scheduled audit this month. Based on its results, we will decide whether to expand the current facility or establish an additional unit.
Q. What are your upcoming plans to serve various industries and sectors?
A. We hold automotive certification and have a well-defined process for working with the automotive sector, particularly in PCB production. We are also expanding into the medical industry and pursuing the necessary certifications, with plans to obtain aerospace certification as well.
Q. What initiatives are you undertaking for the EV (electric vehicle) business?
A. We provide service and contract manufacturing, with the customer handling product marketing. Our primary focus is meeting the required production quantities. To achieve this, it is essential to establish strong partnerships with our suppliers and subcontractors, such as mechanical suppliers.
Q. How was the last fiscal growth, and what are future expectations?
A. From 2023 to 2024, we achieved a growth of 30 to 33%. This year, we expect to see even greater growth, anticipating a 35 to 40% increase.