Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

“Our strategy for sustaining business includes reinventing our customer base”

- Advertisement -

The ISO 14001-certified Frontline Electronics Ltd, an Indian embedded design and EMS company, is spearheaded by managing director, Meghnad Sudhirchandra Shah. A first generation entrepreneur from a traditional business family, who initially ventured into the terrain of automotive electronics and has now diversified into EMS, speaks to Jesus Milton Rousseau S of Electronics Bazaar about Frontline Electronics and its success

Meghnad Sudhirchandra Shah, MD, Frontline Electronics

Tuesday, 7 April, 2009: EB: What made you establish an EMS business in India? Did you face any challenges?

In September 2000, during the ‘Globaltronics 2000’ in Singapore, the gigantic surface mount technology (SMT) machines/lines at the Philips and Siemens stalls really fascinated me. Since then, I only dreamed of SMT machines and the electronics manufacturing services (EMS) business and hence, commenced the EMS journey of Frontline Electronics Ltd.

- Advertisement -

The major challenges I faced were the lack of a godfather in the manufacturing industry, dearth of committed customers, scarcity of experienced employees due to continuous pressure on salary outflow, rapid changes in product mix and the constant need for upgradation of manufactural setup to stay in the race. All the while I struggled to maintain high profits by staying lean and mean. Ironically, these challenges were also the route to the complex, but exhilarating solutions.

The biggest challenge and the turning point of our business was in 2001, when we lost our most prized customer, who contributed to 93 per cent of our sales/business. We laboured hard to convert our small customers to collectively comprise 93 per cent of our business sales within the same 12 month period.

EB: What is your position in the EMS business market in India and what kind of services do you offer your customers?

As per the latest Electronics Bazaar survey, we are positioned at number 13 in the Indian EMS business.

We mainly focus on automotive, telecom, medical electronics and appliance controls. We provide EMS services for populated printed circuit board (PCB) assemblies, box build of electronic products, embedded design and manufacture for 8-bit consumer applications/products for existing customers and redesign of PCB layouts.

EB: What are the advantages and disadvantages of manufacturing in India? Do you think the government policies here are conducive to business?

India’s advantages are its technically qualified staff and the command over the English language possessed by its people. The most conspicuous disadvantage would be its fragmented and small customer base.

The inverted duty structure rewards import of products and one can import many products at zero duty. The point that the government fails to see is that why would anyone take the trouble of manufacturing products in India, if there is zero duty being levied?

EB: What is Frontline’s current production capacity? What was the revenue of your company in the last fiscal? Which countries does your company export to?

We have a production capacity for a million boards of SMT and through-hole in mixed applications, for both RoHS and tin/lead products. Our revenue in the financial year 2007-08 was Rs 160.70 million. We are a zero debt company with assets worth over Rs 200 million. At present, we export to the Netherlands, USA and Germany.

EB: What are your future plans?

Our future plan is to amplify the engineering EMS business and to launch products designed by our company’s embedded design team. Our strategies for sustaining our business include reinventing our customer base, upgrading to the latest technologies in manufacturing and scouting for new avenues in exports.

“There is want of a modern component industry in India. Even though all components are available at zero per cent customs duty, the cascading effects of countervailing duty, surcharges and auxiliary duty finally result in price escalation to the tune of 20 to 22 per cent (in case of octroi addition)! Are the bureaucrats citizens of India or of China? They seem to have more sympathy for them than for their Indian brothers. The government has certainly made things strenuous for us, business-wise”

Fact File

 Year of Establishment:1997Turnover (2007-2008):Rs 160.70 millionWorkforce:175Plant locations:Pune, Dehradun, Uttaranchal, BangaloreProducts:Electronic controller printed circuit board assemblies (PCBAs) for water purifiers (both domestic and industrial), controller PCBAs for air conditioners, refrigerators, washing machines, vacuum cleaners, remote fan speed regulators, PCBAs for process control applications, industrial SMPS, set top box PCBAs, etcClients:Tata Motors Ltd, Eureka Forbes Ltd, Aquamall Water Solutions Ltd, Forbes Aquamall Ltd, BEL Optronics Ltd, and GE Power Controls, NetherlandsContact details:EL-35, Electronic Zone, J Block, MIDC Bhosari, Pune: 411026; Phone: 020-27125894/95; Fax: 020- 27124045; e-mail: meghnadshah@frontlineelectronics.com, contact@frontlineelectronics.com

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

- Advertisement -

Most Popular Articles

Industry's Buzz

India May Revise EV Policy Following Trade Talks

0
With major policy changes hinging on the outcome of trade negotiations, India may slash import duties and ease investment rules to attract global EV...

Samsung, Micron Exit DDR4, Taiwan Steps In

0
DDR4 era ending? Samsung and Micron cut output, followed by SK Hynix. Taiwanese firms are gaining momentum as DDR5 and HBM take centre stage...

Suzlon Lands 378MW Wind Deal With NTPC Green Energy

0
Powering India’s green goals in Karnataka, Suzlon clinches 378MW wind deal with NTPC Green Energy, boosting their clean power partnership to 1.54GW. Wind turbine...

STMicroelectronics Sees Q2 Recovery After Weak Start To 2025

0
Despite profit plunge, STMicroelectronics meets Q1 targets, forecasts Q2 rebound with $2.71 billion revenue as chip sector begins slow recovery. Shares jump 4 per...

Delta Electronics Eyes Growth In India Amid Supply Chain Shifts

0
Powering up in India by tapping EVs, AI, and automation, Delta Electronics is eyeing growth as global firms shift from China to the country's...

Learn From Leaders

Dr Venkatesh Vadde, Co-founder and CEO, Sensio Enterprises

“We Are One Of The Very Few—Perhaps Two Or Three—Companies Globally That Are Actually...

0
A decade ago, smartwatches were unknown. But now, the still nascent wearable market is talking about smart rings for health monitoring! What does Bengaluru’s...
Agalya Kondappan, Managing Director, Glonix Electronics Private Limited

“By Procuring Components In One Lot And Fabricating The Boards At Once, Clients Can...

0
Calling themselves a comprehensive solution provider, how is a company ensuring component authenticity, managing pricing, fabricating and assembling, then offering cost-effective bulk solutions? Agalya...
Kiran M S, Founder and Managing Director, Indus Technologies

“We Collaborate Directly With Customers Due To Ongoing Market Volatility To Create More Realistic,...

0
Can volatile supply chains be tackled without traditional forecasting tools? With 15 years in the industry, Kiran M S of Indus Technologies tells EFY’s...
Avesh Memon, Founder and CEO, Rilox EV Private Limited

“There Should Be Additional PLI Schemes For SMEs”- Avesh Memon, Rilox EV

0
As electric logistics gain momentum, key roadblocks remain. Avesh Memon of Rilox EV breaks down how limited charging infrastructure, high EV costs, and battery...

“We Aim To Make Every Garage In India EV-Ready” – Shubham Mishra of BatteryOK...

0
How Battery diagnostics in electric vehicles can be upgraded leveraging artificial intelligence? Shubham Mishra of BatteryOK Technologies, shares these insights with EFY’s Aryaman Raghuvanshi...

Startups

Dr Venkatesh Vadde, Co-founder and CEO, Sensio Enterprises

“We Are One Of The Very Few—Perhaps Two Or Three—Companies Globally That Are Actually...

0
A decade ago, smartwatches were unknown. But now, the still nascent wearable market is talking about smart rings for health monitoring! What does Bengaluru’s...

Inside BluSmart’s Stunning Fall After SEBI Crackdown Turns Green Ride Red

0
Once India’s EV poster child, BluSmart has halted services after SEBI exposed massive fund misuse, unravelling a cautionary tale of ambition, misgovernance, and lost...

IG Drones Reports 330% Revenue Growth In FY25, Eyes ₹1B Target

0
Soaring with 330% revenue growth in FY25, startup IG Drones eyes ₹1 billion in FY26, backed by booming demand, new drones, and global expansion...

Plugzmart’s Indigenous EV Fast Charger Gets ARAI Approval

0
Powering heavy-duty vehicles in 20 minutes while backing India’s push for tech self-reliance, Plugzmart’s fully homegrown 240kW EV fast charger earns ARAI nod. Plugzmart,...

Ather Energy Mulls $50 Million IPO Cut

0
Due to market volatility, Ather Energy may trim its $400 million IPO by $50 million but plans to proceed with the offering in the...