Salzer Electronics eyeing 15% CAGR, Rs.1000 cr revenue by 2021
The Dollar Business Bureau
Salzer Electronics, a leading name in the field of electrical products manufacturing, said on Monday that it is looking at a compound annual growth rate (CAGR) of 15% and aims to become a Rs.1,000 crore firm by 2021, following technology alliances globally and augment the share of value-added products.
“We expect Rs.430 crore turnover by FY 18, Rs.520 crore by FY 19 and intend to emerge as a Rs.1,000 crore company by 2021,” R Doraiswamy, Managing Director of Salzer Electronics told PTI.
“We believe that revenues from our existing products are expected to grow at a 15% CAGR during this period. Going forward the company’s focus is to achieve profitable growth by adding newer products, which are customised and value-added in nature, exploring newer geographies, which can yield better margins,” he said.
The company’s revenues has grown from just Rs.55 crore in the financial year 2006-07 to Rs.384 crore in the 2016-17 fiscal – a seven-fold growth in ten years. The net profit of the company has increased from Rs.3 crore to Rs.17 crore during the said period.
Doraiswamy further said that the company is eyeing investments for enhancing business in global technology partnerships and foraying into multi-year product alliances with big multi-national companies (MNCs).
The company is also focusing to bring in technologically-advanced products into the country at reasonable cost, he added.
Our marquee associations remain to be strong with our clients, Doraiswamy said, while adding that Salzer’s relationship with GE grew two-fold in quantum in the last fiscal to aggregate 5% of revenues. The company remained the preferred global vendor of Schneiders for magnetics aggregating 7% of revenues.
With L&T, our relationship continued to be strong whereas our relationship is growing with various other MNCs, he said.
Salzer has concluded an investment of Rs.27 crore in a project for three-phase dry type transformers with collaboration on design and technology from Austria’s technology company Traformodern.
This cutting-edge technology is mainly confined to the Europe and the US. There are just a few companies in India in this field, representing huge opportunity in this under-addressed field. This product is mainly used in mission-critical fields such as urban metro rail transport systems, Doraiswamy informed.
Salzer Electronics has also inked a memorandum of understanding (MoU) with German company Saelzer Electric GmbH for possibility of cooperation in utilising their inherent strengths for jointly developing products using cutting edge technology and exploring possibilities for jointly marketing rotary cam switches globally, he said.