DCX Systems Ltd - Stock Valuation and Financial Performance

The company was incorporated as “DCX Cable Assemblies Private Limited” on December 16, 2011, at Bengaluru, Karnataka as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Karnataka (RoC). Thereafter, the name of the Company was changed to ‘DCX Systems Private Limited’ pursuant to a special resolution dated November 24, 2021, passed by its shareholders and a fresh certificate of incorporation consequent upon change of name issued by the RoC on January 3, 2022. Pursuant to the conversion of the Company to a public limited company, in accordance with the special resolution passed by its Shareholders dated February 2, 2022, the name of the Company was changed to “DCX Systems Limited” and the RoC issued a fresh certificate of incorporation on February 18, 2022.

DCX Systems is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector. It is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and are also involved in kitting. It commenced operations in 2011 and has been a preferred Indian Offset Partner (IOP) for foreign original equipment manufacturers (OEMs) for executing aerospace and defence manufacturing projects. It is also one of the largest Indian Offset Partner (IOP) for ELTA Systems and Israel Aerospace Industries, System Missiles and Space Division (together, the IAI Group), Israel, for the Indian defence market for manufacture of electronic sub-systems and cable and wire harness assemblies. Over the years, it has expanded its manufacturing capabilities and grown its order book.

Business area of the company

The company classifies its operations under the following business verticals:

• System Integration: The company undertakes system integration in areas of radar systems, sensors, electronic warfare, missiles, and communication systems. It provides product assembly and system integration services of various complexities to address customers’ requirements. System integration services are part of a comprehensive array of electronics and electro-mechanical assembly and enclosure assembly. It also provides product repair support for the parts that it manufacture.
  
• Cable and Wire Harness Assemblies: The company manufactures a comprehensive array of cables and wire harnesses assemblies such as radio frequency cables, co-axial, mixed signal, power, and data cables for a variety of uses including communication systems, sensors, surveillance systems, missile systems, military armored vehicles, and other electronic warfare systems for the aerospace and defence industries as per the customers’ requirements.
  
• Kitting: The company supply assembly ready kits of electronic and electro-mechanical parts and undertake all aspects of procurement including sourcing components from suppliers approved by its customer along with a ‘Certificate of Compliance’ for traceability, controlled storage of moisture sensitive devices to ensure that customers receive complete, assembly-ready kits when required when they are needed for production.
  

In addition, the company also undertakes certain job work services that includes assembly and testing of materials that have been supplied directly by its customers.

Key Awards, Accreditations and Recognition

• 2013: Awarded AS-9100:2016 and ISO 9001:2015 certification by DQS Inc.
  
• 2018: Awarded the most promising Manufacturing (Cables) Company of the Year at the 11th International Achievers Summit on ‘Global Business Opportunities’.
  
• 2018: Conferred the Excellence Award for Industrial Development by the Indian Economic Developmental and Research Association at the National Seminar on Outstanding Contributions to National Development.
  
• 2018: Won the India 5000 Best MSME Awards.
  

Major events and milestones

• 2011: Incorporated as a private limited company.
  
• 2012: Executed first direct export order.
  
• 2013: Executed first deemed export order.
  
• 2015: Granted industrial license by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India for manufacturing items including microwave components, electronic components, and assembly and testing of microwave modules.
  
• 2018: Granted authorisation for export of Munitions List items to IAI Elta System, Israel for end use of Indian Air Force and Navy.
  
• 2018: Signed lease deed for 6,070 square meters of land in the Aerospace SEZ Sector, Hitech, Defence & Aerospace Park.
  
• 2022: Raneal Advanced Systems Private Limited incorporated as the company’s wholly-owned subsidiary.