Syrma SGS Technology Ltd - Stock Valuation and Financial Performance

Syrma SGS Technology was incorporated as ‘Syrma Technology Private Limited’ pursuant to a certificate of incorporation dated August 23, 2004, issued by the Registrar of Companies, Maharashtra at Mumbai (RoC). Thereafter, pursuant to a resolution passed by Shareholders in the extraordinary general meeting held on August 28, 2021, the name of the company was changed from ‘Syrma Technology Private Limited’ to ‘Syrma SGS Technology Private Limited’, and consequently, a fresh certificate of incorporation dated September 14, 2021, was issued by the RoC to company. Thereafter, the Company was converted from a private limited company to a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on October 6, 2021, and the name of our Company was changed to Syrma SGS Technology Limited, and a fresh certificate of incorporation dated October 20, 2021, was issued to our Company by the RoC.

The company is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS), specialising in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products and IT industries. Among the large bouquet of EMS players in India, it is one of the fastest growing Indian-headquartered ESDM companies. The company has a track record of technical innovation which involves working with the engineering teams of its marquee customers, and over the years, it has evolved to provide integrated services and solutions to OEMs, from the initial product concept stage to volume production through concept co-creation and product realization. Its manufacturing infrastructure enables it to undertake a high mix of products with flexible production volume requirements. It is leaders in high mix low volume product management and is present in most industrial verticals. Further, it is one of the leading PCBA manufacturers in India, supplying to various OEMs and assemblers in the market. The company is also amongst the top key global manufacturers of custom RFID tags.

The company leverages its various strengths such as global sourcing capabilities and long-standing relationship with its vendors to consolidate and bring down the cost of raw materials and components, and explore alternative components, vendors, materials and processes to reduce product cost and bring products faster to market. Its concept co-creation initiative enables it to design products for its customers from the ideation / concept phase that they initiate and give them the preliminary prototypes for their testing and trials. It currently operates through 11 strategically located manufacturing facilities in north India (i.e. Himachal Pradesh, Haryana and Uttar Pradesh) and south India (i.e. Tamil Nadu and Karnataka). Its presence in these states enables it to efficiently cater to the requirements of its customers in north and south India.

Business area of the company

Syrma SGS Technology has been the preferred value creator for its customers over many years through innovative and efficient Electronic System Design and Manufacturing. It provides high-mix, flexible volume, precision OEM manufacturing. Its one-stop-solution electronics manufacturing services (EMS) includes product design, quick prototyping, PCB assembly, Box build, repair & rework and automatic tester development services. It also offers OEM solutions for RFID tags & inlays and high-frequency magnetic components. It serves global OEMs in 20+ countries and has supplied several hundreds of million units.

Key awards, accreditations or recognitions

• 2013: Best SEZ (MSME: Computer Hardware) by Export Promotion Council for EOUs & SEZs at the EPCES Export Awards for 2010-11.
  
• 2016: Third place in medium scale process under supervisor category at the 11th edition of CII Southern Region Kaizen Competition 2016.
  
• 2018: First place in manufacturing sector medium scale in the 3rd edition of CII Southern Region Poka Yoke Competition 2018.
  
• 2021: Certificate of merit in environment management (SME) for the year 2020-21 at the ELCINA awards.
  
• 2021: 2nd prize in quality (SME) for the year 2020-21 at the 46th ELCINA awards.
  
• 2021: 1st prize in business excellence (SME) for the year 2020-21 at the 46th ELCINA awards.
  
• 2021: Certificate of appreciation for outstanding contribution in promotion of electronics (manufacturing IOT devices) awarded by the Ministry of Electronics and Information Technology
  
• 2022: 1st place for Highest Employment in Electronics Hardware and Telecommunication at the Export Excellence Award 2019-20.

Major events and milestones

• 2006: Set up manufacturing unit in the MEPZ-SEZ, Chennai.
  
• 2010: Set up manufacturing facility in Bargur.
  
• 2012: Commenced manufacturing beacons for vehicles.
  
• 2014: Set up first research & development department in India.
  
• 2016: Commenced manufacturing RFID tags.
  
• 2018: Set up manufacturing facility in Bawal.
  
• 2018: Set up ‘zone of autonomous creation’ to support the provision of rapid prototyping services.
  
• 2018: Set up another manufacturing unit in the MEPZ-SEZ, Chennai.
  
• 2019: Commenced offering repair and rework services.
  
• 2020: Commenced the manufacture of controllers of the EV battery management systems.
  
• 2020: Investment in Company by South Asia Growth Fund II Holdings LLC and South Asia EBT Trust.
  
• 2021: Acquired SGS Tekniks Manufacturing Private Limited.
  
• 2021: Acquired 75% of the issued and paid up share capital of Perfect ID India Private Limited.