Elin Electronics Ltd - Stock Valuation and Financial Performance

Elin Electronics Limited was originally incorporated on March 26, 1982 at Kolkata, West Bengal as a private limited company under the Companies Act, 1956, with the name ‘Elin Electronics Private Limited’ pursuant to a certificate of incorporation granted by the Registrar of the Companies, West Bengal at Kolkata (“RoC”). Subsequently, the name of the Company was changed to ‘Elin Electronics Limited’ upon conversion of the Company into a public company pursuant to a special resolution passed by the shareholders on July 27, 1987 and the certificate of incorporation was amended by the RoC consequent upon change of name on conversion to public limited company on November 22, 1987.

Elin Electronics is a leading electronics manufacturing services (EMS) manufacturer of end-to-end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India, and is one of the largest fractional horsepower motors manufacturers in India. In addition, it is one of the key players in LED lighting and flashlight and is also one of the key players in small appliances vertical. The company manufactures and assembles a wide array of products and provides end-to-end product solutions. It serves under both original equipment manufacturers (OEM) and original design manufacturer (ODM) business models. Under the OEM model, it manufactures and supply products basis designs developed by its customers, who then further distribute these products under their own brands. Under the ODM model, in addition to manufacturing, it conceptualizes and designs the products which are then marketed to its customers’ prospective customers under their brands. It has developed ODM capabilities with respect to lighting products and small appliances.

Business area of the company

The company’s key diversified product portfolio in EMS includes (i) LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets; (ii) small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener; (iii) fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc.; and (iv) other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets. In addition to its EMS offerings, it also manufactures medical diagnostic cartridges for use in diagnostic devices, and plastic moulded and sheet metal parts and components, largely for customers in the auto ancillary and consumer durables sectors. It manufactures and sells fractional horsepower motors in its own brand name “Elin”. The company offers innovative solutions to its customers, which include leading international and national consumer electronics brands. Its comprehensive solution suite includes global sourcing, fabrication of components and parts, captive manufacturing and assembly, quality testing, packaging and logistics support, which enables it to partner with leading consumer electronics and appliances brands in India.

Key Awards, Accreditations and Recognition

• 2014: 2013 Regional Cooperation Award by Denso Corporation.
  
• 2014: Bronze Supplier Award by IFB Appliances.
  
• 2014: Certificate of Appreciation presented by Denso Haryana Private Limited in the category of “Regional Best Supplier”.
  
• 2016: Certificate of Appreciation by IFB Appliances in recognition of Company’s Unflinching Support”.
  
• 2016: ELCINA-EFYGROUP award for Excellence in Electronics.
  
• 2018: Customer First Award presented by Philips at the Philips Lightning Supplier Event India.
  
• 2018: Best Supplier Quality Award - Certificate of Appreciation, presented by Daikin Airconditioning India Private Limited, in recognition of outstanding efforts to achieve “Quality Target for FY 2017”.
  
• 2022: Appreciation certificate for achieving the stable quality in selected parts from Direct on Line Business Partner from Denso.

Major events and milestones

• 1969: Establishment of ‘Electronic Industries of India’.
  
• 1996: Established plants in Goa for manufacturing appliances for Philips.
  
• 2001: Diversified into various categories of motors and started manufacturing luminaires for Philips.
  
• 2004: Inaugurated a plant in Baddi for manufacturing appliances.
  
• 2007: Manufactured flashlights for Eveready.
  
• 2019: Commenced production of fans.
  
• 2019: Commenced production of medical diagnostic cartridges.