Friday, December 12, 2014: This is the sixth manufacturing unit of SGST in India. The unit has been commissioned to provide end to end services to all verticals requiring high end electronics. Spread over an area of 8000sqm, this new facility has installed one SMT line, with a provision for four more
By Richa Chakravarty
Having established a stronghold in the electronics manufacturing services (EMS) domain, SGS Tekniks Manufacturing Pvt Ltd (SGST) is all set to take its next big leap forward. Anticipating huge growth in the ESDM sector and working in line with the government’s ‘Make in India’ initiative, the company inaugurated its new manufacturing facility in Manesar. This is the sixth manufacturing unit of SGST in India. It has been commissioned to provide end to end services to all verticals requiring high end electronics.
Established in 1990, the company is managed by its four promoters who dreamt of bringing EMS into India. Sanjiv Narayan, managing director; Ranjit Singh, director, international business; J S Gujral, director, finance and commercial; and Krishna Kumar Pant, director, JV operations, are the pillars of SGST today. With a focus on bringing the EMS concept to India, the four partners quit their jobs and set up their company with whatever savings they had. Promoted by professionals with expertise in different areas, SGST doubled its turnover within three years of its inception. Ever since, it has managed to grow at a rate of 28 per cent, year on year.
Services delivered
SGST delivers end to end solutions to original equipment manufacturers (OEMs). It provides electronic sub-assemblies for various customers in India and Europe. The company exports more than 30 per cent of its turnover. It has a design and development centre at Gurgaon and Stuttgart (Germany) along with six manufacturing plants with an annual capacity of over 2 billion components per hour (CPH).
The company started off catering to government organisations. Its first customer was the Indian Telephone Industries (ITI), for which it did only consignment work in the first year. By 1992, SGST earned the distinction of being the only company that was approved to manufacture products for the Centre for the Development of Telematics (C-DoT) without being its licensee. However, the company later took up projects that presented various challenges. Venturing into new verticals like industrial electronics and office automation was not smooth sailing for the company. SGST has had to go through a complete transition in terms of its quality standards and testing capabilities, since it was catering to the top MNCs, which demanded high standards.
With a focus on quality, SGST has set up modern production lines, and over the years increased its production capacity. Today, it has the capacity to produce over 500,000 PCBs every month with a capability of populating 225,000 CPH.
The company offers complete engineering solutions for boxed products, which include hardware designing, PCB designing/development, plastic and metal parts tool development and software development. It also provides design solutions for manufacturing services and assists its customers in taking new products to the manufacturing stage.
Its design centre in Germany provides design support to the company’s European customers, while the India office provides back-end support. The design centre in Germany has also started taking on independent contracts.
Major services provided:
- Electronics design, manufacturing of products and systems integration services
- Prototyping, sourcing, turnkey manufacturing and support services of high tech/high mix, medium volume electronic products/systems
- Manufacturing of PCBAs, box building and full integration and OEM manufacturing
- Design and development
- EMS for high end electronics
SGS’s Manesar facility has been set up to meet customer expectations in high end electronics. Spread over an area of 8000sqm, it has one SMT line with a provision for four more. The new plant in Manesar is completely lead free with automatic radial and axial mounting machines, nitrogen base reflow, wave and selective soldering options. It also has online 3D SPI and AOI systems with inline rejected PCBA conveyor movement. It provides clean environment standards for manufacturing and follows stringent quality processes.
a) Class 8 on SMT
b) Class 9 on finishing
c) Dust filter: 10 micron
d) Temperature range: +25/-3 ºC
e) Humidity range: +50 per cent/-20 per cent
f) Positive air circulation – 20 per cent.
While providing EMS, SGS Tekniks also partners with customers to provide electronic design services (EDS) at any phase of the product development cycle from conceptualisation to mass production. It works as a seamless extension to achieve customers’ internal design capabilities by getting involved at the very initial stages of the product development process and working closely with the customer’s engineers. Apart from design for manufacturing, the firm also assists customers in transitioning new products into the manufacturing phase
It has a dedicated engineering team to standardise procedures to translate customer requirements into production and sourcing requirements. It offers a complete product engineering solution for the boxed products, from hardware, designing of PCBs and development of plastic and metal parts and tools to software development. Thus, it offers one-stop shop solutions to its customers.
Current marketing strategies
The company has aggressive plans to increase its presence in its major export markets in Europe. For this, SGST has added more people to its marketing department and initiated an export development programme at its dedicated RoHS-compliant facility.
It plans to double exports to Europe in the next two years. Today, its exports account for Rs 250 million, and the company is targeting to achieve Rs 500 million in exports soon. In order to achieve its revenue targets, SGST has added the new vertical of power supplies to its export portfolio of industrial electronics and automotive electronics.
Buoyed by government initiatives to boost manufacturing, SGST is looking forward to growing in the segments it is strong in—industrial electronics, energy, lighting, water purification and power electronics. The company plans to double its turnover to Rs 3 billion by March 2015.
