With focus on innovation and quality, Cubix Control Systems aims to strengthen its position in EMS market

In order to have a stronger presence in the industry, Cubix Control Systems is working towards strengthening its marketing capabilities and introducing the latest technology and products

By Nitasha Chawla

Wednesday, September 11, 2013: Founded in 1989 by the late RK Chaudhry, a self-made entrepreneur, Cubix Control Systems (P) Ltd has grown exponentially since its inception. After the company lost its founder in 2011, Varun Chaudhry, son of RK Chaudhry, took over as its director, with the aim of taking his father’s business to new heights, with the support of his mother, Geeta Chaudhry, also a director in the company. The company’s turnover in 2012-13 was Rs 300 million, a 20 per cent increase over the previous year.

RK Chaudhry was a mechanical engineer who worked with HCL as its R&D manager. He set up his own company with his wife, Geeta, doing small projects for HCL. “We had a very modest beginning, operating from a one-room office in Noida. HCL was our first customer for whom we made wire-harnesses, keyboards and motherboards. However, within a short span of nine months, Maruti also became our customer, and we made automotive assemblies for them. It was due to the sheer hard work of my husband that we were able to establish ourselves in the EMS market, acquiring major OEMs as our customers,” recalls Geeta Chaudhry.

The journey so far

RK Chaudhry handled the commercial aspects of the business while Geeta Chaudhry looked after the production side. Cubix started off with a small team of four people. However, within a matter of six months, the company hired 20 people and expanded to a multiple floor office. After Maruti became its customer, there was no looking back for Cubix. Many more automotive brands like Escorts, M&M, Yamaha and Motherson were added to its portfolio, gradually.

In the mid-90s, Cubix ventured into the consumer electronics space with Electrolux as its key customer. The company started making refrigerator assemblies for Electrolux. “Our commitment to deliver high-quality, innovative and cost-effective end-to-end electronics solutions to our customers by leveraging our unparalleled manufacturing experience, design capabilities and state-of-the-art infrastructure helped us to get more and more leading brands as our customers,” shares Geeta Chaudhary. Yamaha has been Cubix’s customer for more than two decades now, and Intex Technologies is its another key customer.

Adherence to strict quality standards has helped Cubix achieve ISO 9001-2000 Quality Management System certification at a very early stage, making it one of the first small-sized companies to get it. In 2006, the company won a quality management system award from TUV Rheinland.

Services offered

Cubix offers customer-centric solutions for printed circuit board assemblies (PCBAs) in through-hole as well as surface mount technology, complete box built assemblies, and wire harnesses to leading OEMs in industries like consumer electronics, automotive, IT peripherals, telecom, industrial, etc. A qualified in-house engineering team works on original design and manufacturing (ODM) products from the concept to the volume production stage by offering design services for schematics, PCB layouts, plastic/metal hardware, software, testing procedures, prototypes, etc. Cubix also offers continuous value engineering, and cost-competitiveness through its direct component sourcing from Hong Kong, Singapore and China.

Overcoming challenges

In 1997, Cubix lost a major automotive player as a customer after serving them for a decade due to its ‘nearest vendor’ policy, which gave preference to vendors located in close proximity to the company. “The company accounted for 30 per cent of our revenues. However, we had to end our relationship with them after the announcement of the new policy. We were fortunate to recover the losses by roping in Electrolux, which was a leading consumer electronics player at that time,” says Geeta Chaudhry.

However, Cubix suffered another setback that resulted in a huge loss of inventory and revenue. In 1998, Cubix was ready to deliver a big order for Electrolux’s refrigerators when it learnt that the product had some design problems. As a result, production was shut down immediately, and Cubix was left with a huge unused inventory piled up at its facility. “We lost a huge chunk of revenue because of this. It took us a lot of time to recover after we lost Electrolux,” says Geeta Chaudhry.

After this, Cubix shifted its focus to the automotive sector with customers like Minda, Mahindra & Mahindra and Motherson, for whom it made motorcycle parts. While these are challenges common to every industry and business, one setback from which Cubix can never recover is the loss of its visionary director, RK Chaudhry. “We have been able to sail smoothly past all the other hurdles and challenges. But my husband was the backbone of the company and losing him has been the biggest setback for us. However, I am confident that now Cubix will reach bigger heights under Varun’s leadership,” she adds.

Infrastructure

The manufacturing facility at Cubix boasts of a world class production floor of 1858.1 sq m, with over 250 highly motivated skilled workers and an annual capacity to manufacture over 3 million RoHS-compliant PCB assemblies in an ESD controlled environment. High-quality products are manufactured with conveyored assembly lines using the latest machines and equipment. To ensure zero defect shipments, products are tested on customised microcontroller cathode ray oscilloscope (CRO) based testing set-ups. Cubix’s prowess also lies in its lean manufacturing operations controlled by a custom Enterprise Resource Planning (ERP) management system and a well-established quality management system.

Strengths and weaknesses

Cubix plays on its strengths, which are strict quality systems, cost-effective products and on-time delivery. Apart from that, Cubix has always maintained transparency with its customers in order to build long-term relationships with them. “We don’t make false promises to our customers as we believe in fostering relationships with them on a long-term. This allows us to enjoy an immense level of comfort with our customers,” says Geeta Chaudhry. Cubix also considers its skilled and dedicated workforce as one of its key strengths. “Most of our staff has been with us for more than a decade. They are like family to us. We also provide training to our engineers from time to time—by agencies like TUV Rheinland,” she adds.

However, one area where the company lags behind is in marketing. Therefore, Varun Chaudhary is now in the process of strengthening the firm’s marketing department to leverage the growing demand in the electronics industry. “We need to strengthen our marketing skills, I get feedback from some customers that a lot of OEMs are still not aware of our company. So, I am planning to hire more staff to make us more visible and market our products in the industry. We are also advertising in the print media to make ourselves more visible in the market,” he says.

The road ahead

Varun aims to grow Cubix with a focus on innovation, which is a necessary factor to stay competitive. Cubix has plans to enter into different segments like home appliances in the next six months.

Understanding the need to be technologically sound, Cubix will soon establish its own SMT line since, at the moment, the company relies on through-hole technology. “The SMT line will help us produce high-end automotive products. We are also working on strengthening our existing lines and adding more customers. We grew 20 per cent this year and I want to focus on increasing our profit margin in the next fiscal, rather than increasing just the turnover,” says Geeta Chaudhry.

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine