Salzer Electronics, engaged in manufacturing of wide range of electrical products, today said it is looking at 15 percent CAGR growth and intends to emerge as Rs 1,000 crore company by 2021, following global technology alliances and enhance the proportion 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,” Salzer Electronics managing director R Doraiswamy told PTI here.
“We believe that revenues from our existing products are expected to grow at a 15 percent 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 has grown revenues from Rs 55 crore in 2006-07 to Rs 384 crore in 2016-17 – seven times in 10 years; net profit improved from Rs 3 crore to Rs 17 crore during the period.
“We are looking at business-enhancing investments in global technology alliances and entering into multi-year product partnerships with large MNCs. We are also focusing on bringing technologically advanced products into India at attractive costs,” Doraiswamy said.
Our marquee relationships continue to be robust; our GE relationship doubled in quantum during the last financial year to aggregate 5 percent of revenues while we remained Schneider’s preferred global vendor for magnetics (7 percent of revenues); our L&T relationship continued to be strong while our relationship with various other multinationals is growing, he added.
The company has completed its Rs 27 crore investment in three phase dry type transformer project with design and technology collaboration from Traformodern, a high technology company based in Austria. This cutting-edge technology is largely confined to US and Europe; there are few Indian companies in this field, representing a large under-addressed opportunity. This product is used in mission-critical areas like urban metro rail transportation systems.
The company has also signed an MoU with Saelzer Electric GmbH, Germany, for possible co-operation between two companies to leverage on their inherent strengths for joint product development with cutting edge technologies and exploring joint marketing for rotary cam switches world-wide, Doraiswamy said.