In an interaction with Deepak Chaudhari, Managing Director of Spectrum Group of Industries
We are confident and upbeat considering current market sentiments and there will be no dearth of funds to propel the growth plans, expresses Deepak Chaudhari, Managing Director of Spectrum Group of Industries
What is your experience of listing your company on the SME platform?
I would say getting to the thought of listing the company on the SME platform is a big respite itself. It’s a good vehicle for SMEs to row themselves on the right foothold. These platforms offer a unique opportunity for aspiring SMEs to raise capital, unlock its value and get listed on a national stock exchange. They guide SMEs on the process required to list and introduction to intermediaries that can assist such companies to list.
The size of funds required by the SMEs makes main board issues also an unattractive proposition. Considering such and similar challenges the regulators have created SME Exchanges. These SME Exchanges address the issue of size, cost, control etc. that are vital for the functioning of the SMEs.
What are your key strengths?
As already stated here elsewhere at Spectrum we keep it simple. Our strategy has been to provide solutions to customers' issues proactively. Seize up customer issues rather than consider them as opportunities and convert them into growth vehicles. We do it with conscientious passion which probably may not have parallel.
We believe and have created a state-of-the-art infrastructure for each of the business verticals we operate. We acquire and deploy the best-in-class technology. We are a technology-savvy organization We believe in faster updation and remain not only contemporary but ahead of time. We believe in and ensure future readiness in whatever domain we operate.
Extra capacities provide resilience honouring huge shifts in customer demand forecasts at the shortest possible lead times, an indispensable winning edge and help enhance customer satisfaction, customer growth and retention.
In addition, our multi-geography and multi-location presence covering three sites at Jalgaon, Nasik and Pune in Maharashtra and two at Bengaluru, and Hyderabad in south India is providing proximity and speed in servicing our customers.
As such there is no wonder Spectrum has come to be known as and is a strength to be reckoned with as a one-stop shop for all solutions with an invincible manufacturing environment and we are committed to maintaining our techno-commercial superiority going forward as it is a part of our business strategy.
What are your expansion plans and how do you plan to finance your expansion?
We have identified a three-pronged strategy to catapult future growth:
Extend and defend existing core businesses:
It simply means in the short term our future growth inter alia expansion shall permeate from leveraging our current strengths in metal fabrication and stamping, plastics molding and surface coatings operations supplemented by our experience and expertise gained over the years in these business segments. To sharpen our focus by providing value-added services primarily into low voltage switchgear and wiring devices and home automation business segments and expand the frontiers by improving pan India presence thus we are as mentioned earlier are coming up with state-of-the-art facilities in south India.
Build emerging Businesses:
We also aim to work on emerging businesses e.g., EV Chargers, UPS, entry into the large high tech Electrical power panels for power plants, oil and gas refineries, and develop infrastructure for high-end EMS electronics products manufacturing to leverage from the opportunities that arise due to politico-economic crisis in the international market.
Creating genuinely new Businesses:
As long-term vision, we are eyeing global opportunities and going beyond the current B2B business model and are looking forward to Joint ventures, technology ventures and cooperation ventures including M & A into a diversified business portfolio.
To fuel the growth, we are primarily looking for term loans, project-specific govt schemes and subsidies, discerning equity investors and partly utilising the reserves and accruals for short-term funds requirements. We are confident and upbeat considering current market sentiments and our proven execution capabilities there will be no dearth of funds to propel the growth plans.
What are the key risks facing your business?
While we see no major threat or risks facing our business it is prudent to have a deep dive into the prevailing market environment and identify the risks and have a mitigation plan at hand. As such the major risk factor is that our current business model is B2B and that we are heavily dependent on our OEMs who are predominantly top MNCs, our business continuity and growth and any change in their business strategies and or international scenario may impact our prospects immediately.
Also, changes in the govt policies and taxation rules, uncertainty in the raw materials pricing and the availability, especially for import content, shift in customer choices and preferences, sudden technological advents in the products and solutions offerings etc. are some of the risks facing our business.
What is the growth outlook for your business in the coming two to three years?
We foresee a promising outlook for the Electrical industry which is further augmented because of the very industry and public interfacing policies and spending promised by the Government in the current fiscal budget of 2023.
There is strong growth envisaged in the infrastructure segment especially the expansion of the road transportation network, modernization and additions of several Railways, railway stations, airports etc. the momentum given to the residential housing sector, health and wellness and commercial sectors etc, favourable demographics providing opportunities for increased activities into the urbanization, preference for convenience products is likely to increase consumption for electrical products and services many folds.
We at Spectrum are very upbeat that we shall be able to implement our growth strategies and realize the business plans and should be able to knock down three-fold growth in the three-year horizon taking our company’s revenue around Rs 750 crore.