Osel Devices: A Blinded Cautionary Tale for IPO Investors

Osel Devices Introduction

Osel Devices Limited is a premier original equipment manufacturer (OEM) based in Greater Noida, Uttar Pradesh. Founded by visionary techno-entrepreneurs, the company leverages advanced technology and a state-of-the-art manufacturing facility to create high-performance solutions that meet diverse needs

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Brief about Osel Devices

Summary of the business of Osel Devices

Osel is driven by a passion for innovation and a commitment to excellence. As a one of the leading provider of cutting- edge technology solutions, Osel specializes in creating transformative products that empower individuals, businesses, and communities to thrive in a rapidly evolving digital world. Our Company manufactures a comprehensive range of LED display systems and the latest hearing aids, including all major components, at our ultra-modern plant. Ösel’s state-of-the- art manufacturing plant in Greater Noida was inaugurated by Ex-Union Minister Shri Pratap Sarangi.

Osel Devices manufacture comprehensive range of LED display systems. We are equipped with software and hardware capabilities. Osel Devices LED display systems are enabled with content management system which allows it to connect to phone or computer and display on screen. Equipped with the latest technology and adhering to rigorous quality control standards, we produce a wide range of high-performance components and systems. This vertical integration ensures consistency and excellence in every product we deliver. The LED display systems manufactured by us have been used by corporate for commercial usage such as advertising media, billboards, corporate meeting rooms, presentations, display promotions, command control centre and front sign boards.

History of Osel Devices

Osel Devices Company was incorporated on August 14, 2006 as a private limited company under the name and style of ‘Innovative Infratech Soultions Private Limited’, under the Companies Act, 1956, pursuant to a certificate of incorporation dated August 14, 2006 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Subsequently, in order to rectify the transposition error in the name of our Company, pursuant to a resolution passed by our Board of Directors in its meeting held on November 6, 2013, and by the Shareholders in their Extraordinary General Meeting held on November 8, 2013, the name of our Company was changed to ‘Innovative Infratech Solutions Private Limited’ and a fresh certificate of incorporation dated November 22, 2013 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Subsequently, pursuant to a resolution passed by our Board of Directors in its meeting held on November 13, 2023, and by the Shareholders in their extraordinary general meeting held on December 15, 2023, in order to reflect the main business activity of the Company and for better branding, the name of our Company was changed to ‘Osel Devices Private Limited’ and a fresh certificate of incorporation dated January 16, 2024 was issued by the Registrar of Companies, Delhi and Haryana at Delhi.

Promoters & Board of Directors of Osel Devices

• The Promoters of Osel Devices Company are Rajendra Ravi Shanker Mishra and Jyotsna Jawahar.

Board of directors of Osel Devices

Share Holding pattern of Osel Devices

Strength of Osel Devices

• One of the leading specialized LED display system and hearing aids manufacturer with long standing market presence
• Geographical presence
• Quality Assurance and Quality Control of our products
• Strong, cordial & long-term relationship with our clients
• Cost effective production and timely fulfilment of orders
• Well experienced management team
• Marque Customers
• Post Sale service and support

Strategiesv of Osel Devices

• Market Penetration and Geographic Expansion
• Embracing new technologies for Product Diversification and Innovation
• Focus on our Quality Control

Industry Outlook

PREVENTIVE HEALTHCARE IN INDIA

Curative medicine has historically taken precedence over preventive treatment in India. However, as a result of the COVID-19 epidemic, preventive care has become increasingly crucial in India. A recent poll of more than 1,000 people revealed that at least 40% of respondents strongly preferred preventative health. NCDs have been the primary cause of mortality and suffering during the last three decades, accounting for 71% of global deaths. In 2019, India was responsible for 66% of all deaths. Furthermore, more than half of these deaths are caused by heart disease, cancer, chronic respiratory disorders, and diabetes. The economic burden of NCDs on India is anticipated to be over Rs. 511 lakh crore (US$ 6.2 trillion) by 2030. Overweight and obesity alone affect over 17% of our population, costing the country Rs. 2.8 lakh crore (US$ 35 billion) every year, or more than 1% of its GDP.

The preventive healthcare sector, which includes exercise, wellness, foods and supplements, early diagnoses, and health tracking, is estimated to reach US$ 197 billion by 2025, growing at a CAGR of 22%. Healthcare start- ups in India have attracted investments totalling more than US$ 150 million. These start-ups are transforming healthcare delivery in categories such as nutrition, wellness, cancer, genomics, and others. In recent years, healthcare start-ups have revolutionised preventative care in areas such as nutrition, wellness, cancer, genetics, and much more. The necessity of the hour is to implement new technological developments to successfully supply high-quality healthcare to a billion people across India. Preventive care has undergone a revolution in terms of accuracy and speed due to technological disruption and New Age technologies like artificial intelligence (AI), machine learning (ML), and the IoT, especially in the wake of the pandemic. As part of its strategy to combat this epidemic, the Government has implemented several public health initiatives. The National Programme for the Prevention and Control of Cancer, Diabetes, Cardiovascular Disease, and Stroke (NPCDCS) raises awareness, establishes infrastructure (such as community health centres, NCD clinics, and cardiac care units), and conducts opportunistic screening at the primary health care level. There are also plans to reduce household consumption of solid fuels and tobacco smoking by 2025.

Healthcare in India

In the medical and healthcare fields, the terms “curative” and “preventive” refer to the two types of healthcare.

Curative Healthcare

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Its primary goal is the treatment of disease or the acceleration of the recovery from an impairment, accident, or illness. The goal is to resolve any ailment and return the patient to their pre-illness state of health. It covers basic medical interventions, such as the use of antibiotics to treat strep throat and other bacterial diseases. Chemotherapy treatments can be used to treat a variety of cancers. Curative healthcare, which will account for 64% of total healthcare spending in India in 2021-22, is expanding at an annual rate of 15%.

• Social Media Stack
  • Social media platforms are being used to democratise preventive healthcare by educating people and raising awareness about health issues. Startups, for example, use social media data to personalise wellness products.
• Proprietary Data stack
  • Startups employ a variety of strategies to gather or acquire health data, including customer data, partner/purchase data, and firm acquisition. They construct data stacks that can be analysed using Artificial Intelligence (Al) or Machine Learning (ML) to make sound decisions.
• Collaboration Stack
  • The implementation of ABDM will promote healthcare data interoperability, resulting in consumer-consent- based data availability for preventative health businesses. As a result, startups will be able to provide personalised solutions across nutrition, fitness, disease management, and insurance

Framework

The foundational pillars for startups delivering preventive healthcare in India are the 3As-Awareness, Accessibility and Affordability.

Stakeholders

• Startups
  • Numerous firms, including BeatO, Plum, Onsurity, HealthifyMe, GOQii, and others, are addressing consumer requirements for a range of preventive healthcare services. Startups are leveraging the cloud to deploy technologies such as machine learning, analytics, and IoT to monitor health, lower core costs, improve collaboration, enable data-driven decision-making, and shorten innovation cycles.
• Diversified Corporates
  • Diversified corporations like Reliance, Tata, Flipkart, and others are concentrating on providing healthcare services to their clients. For instance, Reliance Retail recently purchased a majority share in Netmeds, and Tata Digital recently invested in Cult. fit, and Flipkart created Flipkart Health+ to provide access to authentic medications and healthcare supplies.
• Healthcare Corporates
  • Large healthcare corporations are taking advantage of additional opportunities in the healthcare value chain, including Apollo, Dr. Lal Path Labs, SRL Diagnostics, and others. For example, Apollo promotes preventive healthcare check-ups.

Opportunities

• New age technologies
  • New technologies like Metaverse, Web 3.0, etc., are being incorporated by startups. For instance, GOQii plans to launch the health metaverse and create a number of services that use gamification and blockchain tokens to promote preventive healthcare.
• Personalised care delivery
  • For example, HealthifyMe uses Rio, a virtual assistant built on the Al platform, to offer its consumers customised advice on fitness, diet, and health depending on their lifestyle habits.
• Telehealth applications
  • Examples include vertical health apps like Mojocare. Smiles.ai offers a digital-first care layer that includes daily monitors, general consultative conversations, treatment planning (if applicable), and information through their applications.
• Remote Monitoring
  • For instance, Dozee has introduced Dozee Pro, a contactless vitals monitor for hospitals that transforms any bed into a step-down KU in less than two minutes and allows remote monitoring of patients outside of the KU, improving patient care and clinical outcomes.
• AI/ML-powered diagnostics
  • For example, 5C Networks has developed a technology platform that leverages Al and ML to accelerate medical scan results while maintaining a high level of accuracy.
• Hardware-first innovations
  • For instance, Redcliffe recently tested a commercial drone corridor for sample collection in an inventive effort to increase access to early testing, which could result in early discovery among patients.

Investment Landscape

• Ayushman Bharat Digital Mission
  • The goal of Ayushman Bharat Digital Mission (ABDM) is to build a national digital health ecosystem that supports universal health coverage in an effective, affordable, timely, inclusive, and safe manner. To achieve this, ABDM will provide a variety of data, information, and infrastructure services while appropriately utilising open, interoperable, standards-based digital systems. This ecosystem will also ensure the security, confidentiality, and privacy of personal health information.
• National Health Mission (NHM)
  • The National Rural Health Mission (NRHM) and the National Urban Health Mission (NUHM) are two sub- missions of the National Health Mission (NHM). The primary components of NHM are Health System Strengthening, Reproductive-Maternal-Neonatal-Child and Adolescent Health (RMNCH+A), and Communicable and Noncommunicable Diseases (NCD).

National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Disease and Stroke (NPCDCS)

The National Programme for the Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS) was established in 2010 to prevent and control major non-communicable diseases (NCDs). Under the National Health Mission (NHM) programme focuses on strengthening infrastructure, human resource development, health promotion and awareness generation for cancer prevention, early diagnosis, management, and referral to an appropriate level of healthcare facility for the treatment of Noncommunicable Diseases (NCDs), including cancer. As of December 2022, there are 707 District NCD Clinics, 268 District Day Care Centres, and 5541 Community Health Centre NCD Clinics operating under the NPCDCS.

National Mental Health Programme (NMHP)

The National Mental Health Programme (NMHP), established by the Indian government in 1982, has the following goals:

• To guarantee that everyone has access to a minimal level of mental healthcare in the near future, with a focus on the most disadvantaged and underprivileged segments of society.
• To promote the use of information about mental health in general healthcare and social development.
• To encourage community involvement in the creation of mental health services and to catalyse community- wide initiatives for self-help.

National Programme for Control of Blindness and Visual Impairment (NPCBVI)

The National Programme for Blindness Control was established with the purpose of reducing the prevalence of blindness from 1.4% to 0.3%. Initially, it was a completely government-sponsored scheme. According to the 12th Five Year Plan (FYP), it is 90:10 in hilly states and all NE States, and 60:40 in all other states and UTs. In 2017, the National Programme for Control of Blindness (NPCB) was renamed as the National Programme for Control of Blindness & Visual Impairment (NPCBVI).

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National Programme for Healthcare of Elderly(NPHCE)

The initiative is state-oriented, with the primary goal of providing dedicated healthcare facilities to elderly persons (>60 years of age) at various levels of primary, secondary, and tertiary healthcare.

National Programme for The Prevention & Control of Deafness (NPPCD)

• To stop avoidable hearing loss brought on by illness or accident.
• Early detection, diagnosis, and care for ear conditions that cause hearing loss and deafness.
• To provide medical rehabilitation for deaf people of all ages.
• To make the inter-sectoral connections stronger so that the rehabilitation programmes for deaf people can continue.
• To build institutional capacity for ear care services by supporting the necessary tools and supplies and hiring staff.

National Tobacco Control Programme (NTCP)

During the 11th Five-Year Plan, the Government of India started the National Tobacco Control Programme (NTCP) with the goal of:

• To raise awareness about the detrimental effects of tobacco consumption.
• To decrease the manufacturing and distribution of tobacco goods.
• To ensure the “The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003″ (COTPA)” regulations are effectively implemented.
• Assisting those who want to quit smoking.
• To assist in implementing the tobacco preventive and control measures recommended by the WHO Framework Convention on Tobacco Control.

National Oral Health Programme(NOHP)

• To enhance the factors that influence oral health.
• To lessen oral disease-related morbidity.
• To incorporate preventive and promotion services for oral health into the system of general healthcare.
• To promote the Public Private Partnerships (PPP) model as a means of improving oral health.

National Programme for Palliative Care (NPPC)

• Increase the ability of government health programmes like the National Programme for the Prevention and Control of Cancer, Cardiovascular Disease, Diabetes, and Stroke, the National Programme for the Health Care of the Elderly, the National AIDS Control Programme, and National Rural Health Mission to deliver palliative care services.
• Improve the legal and regulatory framework and assist its execution to ensure that opioids are accessible and readily available for use in medicine and research while preserving safeguards against diversion and misuse.
• Strengthen and include long-term care and palliative care ideas into the educational curricula (of medical, nursing, pharmacy, and social work courses) to promote attitude changes among healthcare workers.
• Encourage behavioural change in the community by raising public awareness and enhancing people’s skills and knowledge in pain management and palliative care, which will result in locally owned projects that assist the healthcare system.
• Create national standards for palliative care services and continuously improve the National Program’s design and execution to ensure progress towards the program’s vision.

National Programme for Prevention & Management of Burn Injuries (NPPMBI)

• To reduce burn injury incidence, death, morbidity, and disability.
• To increase awareness among the general public and vulnerable groups, particularly women, children, and those who work in industries or in hazardous occupations.
• To provide enough networks and infrastructure for interventions in behaviour change communication, burn management, and rehabilitation.
• To conduct research to evaluate the behavioural, social, and other factors that influence burn injuries in our nation in order to create, monitor, and ultimately evaluate effective need-based burn injury programmes.

Other Non-Communicable Disease Control Programmes

• National Organ Tissue and Transplant Organization (NOTTO)
• National Programme for Prevention and Control of Fluorosis (NPPCF)
• National Iodine Deficiency Disorders Control Programme

Fit India Movement

The Prime Minister of India started the FIT INDIA Movement on August 29th, 2019, with the goal of making exercise an intrinsic part of our daily lives. The Movement’s objective is to promote behavioural changes and a

more physically active lifestyle. Fit India proposes to undertake numerous projects and hold events to attain the following goals in order to achieve this mission:

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• To promote fitness as simple, enjoyable, and cost-free.
• Through targeted efforts, raise awareness about fitness and other physical activities that enhance fitness.
• To encourage native sports.
• To provide fitness to every school, university, panchayat, and village, among other places.
• To establish a forum for Indian citizens to exchange knowledge, raise awareness, and promote the sharing of their own fitness-related experiences.

Road Ahead

India is undergoing a rapid health shift. The transition from curative to preventative care is also predicted to benefit the Indian consumer, with improved health outcomes and cheaper healthcare expenses.

Healthcare services are insufficient without preventive, promotional, and screening components. The advantages of prevention go beyond the management of chronic diseases and living longer lives. Preventive Health and Screening OPDs are critical in hospitals for mainstreaming health promotion and preventive healthcare. Investment in preventative healthcare minimises individual suffering, improves sickness outcomes, and significantly reduces the country’s fiscal burden.

ELECTRONICS SYSTEM DESIGN & MANUFACTURING

The Electronics System Design & Manufacturing (ESDM) industry includes electronic hardware products and components relating to information technology (IT), office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano electronics and medical electronics. The industry also includes design-related activities such as product designing, chip designing, Very Large-Scale Integration (VLSI), board designing and embedded systems. The Electronics System Design & Manufacturing (ESDM) market in India is anticipated to increase at a CAGR of 16.1% between 2019 and 2025, owing to strong demand, supportive government policies and increased digitalisation. The ESDM sector plays a key role in the government’s goal of generating US$ 1 trillion of economic value from the digital economy by 2025. India’s digital media and entertainment industry, worth US$ 12 billion, is set to triple by 2030, as forecasted by Redseer. During April- January (2024), the exports of electronic goods were recorded at US$ 22.64 billion as compared to US$ 18.78 billion during same period. The demand for electronic products will rise to US$ 400 billion by 2025 from US$ 33 billion in FY20. India has a goal of producing 1 billion mobile handsets worth US$ 190 billion (Rs. 13,00,000 crore) by 2025, with 600 million handsets worth US$ 110 billion (Rs. 7 lakh crore) targeted for exports.

Advantages

• In 2023, India became Second-largest manufacturer of mobile phones in the world.
• India will be the fifth-largest consumers of electronic products by 2025.
• India has strong design and R&D capabilities in auto electronics and industrial economics.
• In FY23, the exports of electronic goods were recorded at US$ 23.57 billion as compared to US$ 15.66 billion during FY22, registering a growth of 50.52%.
• India and Taiwan plans a US$ 7.5 billion chip plant deal, potentially boosting India’s semiconductor manufacturing with anticipated tariff reductions on components.
• India is committed to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by 2025-26.
• Addressable market for domestic OEMs is projected to be >Rs. 10 lakh crore (US$ 131.99 billion) by 2025.
• The government intends to incentivise and attract investments to set up
• semiconductor FABs (fabrication plants) in India.
• AI is expected to add US$ 967 billion to Indian economy by 2035 and US$ 450-500 billion to India’s GDP by 2025, accounting for 10% of the country’s US$ 5 trillion GDP target.
• In March 2023, the Government approved setting up of the Electronics Manufacturing Cluster (EMC) at Hubli-Dharwad in Karnataka, worth US$ 22 million (Rs. 180 crore) and is expected to create about 18,000 jobs.
• The production-linked incentive (PLI) schemes will provide companies opportunities to establish manufacturing plants in India.
• 100% FDI is allowed under the automatic route. In case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49%, government approval is required.
• The Digital India Program has been transforming the country into a digitally empowered society and knowledge economy since its launch in July 2015.
• The Indian government’s National Policy on Electronics (NPE 2019) aims to facilitate a turnover of US$ 400 billion in domestic manufacturing by 2025.
• In March 2024, the Cabinet approved a massive US$ 15.2 billion (Rs. 1.26 trillion) investment in three semiconductor plants, signifying India’s technological progress.
• Production-linked scheme (PLI) for large- scale electronics manufacturing (including mobiles) has seen investments worth Rs. 6,887 crore (US$ 833 million) (till June 2023), already surpassing the target for FY24 which was Rs. 5,488 crore (US$ 664.4 million).
• Intel invested over US$ 7 billion in design and R&D facilities in the country to date.
• Major Government initiatives such as ‘Digital India’, ‘Make in India’ and supportive policies including a favorable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.

Overview

The Electronics Market includes (Total Domestic Consumption + Exports) + Electronics Design Market + Electronics Manufacturing Services Market

• Electronics Component Market
  • The Electronics System Design & Manufacturing (ESDM) industry includes electronic hardware products and components relating to information technology (IT), office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano electronics and medical electronics. The industry also includes design-related activities such as product designing, chip designing, very large-scale integration (VLSI), board designing and embedded systems
    Note: The top eight product segments by value have been considered for the purpose of market sizing
• The electronics market has grown at a CAGR of 14% from 2016-19 and is expected to accelerate at a CAGR of 16.6% in 2020-25, with the total demand likely to account for US$ 540 billion in FY25.
• In FY23, the imports of electronics goods stood at US$ 73.46 billion, whereas exports stood at US$ 22.68 billion.
• During April-October 2023, the imports of electronics goods stood at US$ 51.33 billion and exports stood at US$ 15.48 billion.
• The ESDM sector is likely to generate US$ 100-130 billion in economic value by 2025.
• The Government of India aims to make electronics goods amongst India’s 2-3 top-ranking exports by 2026.
• Electronics goods exports are expected to increase from the projected US$ 15 billion in 2021-22 to US$ 120 billion by 2026.
• PLI scheme for large scale electronics manufacturing launched by Ministry of Electronics and Information Technology (MeitY) in April 2020 has been extended from existing five years band (FY21- FY25) to six years (FY21-FY26).
• The government allocated Rs. 6,903 crore (US$ 830.8 million) for the Indian Semiconductor Mission in the Union Budget 2024-25, which is likely to help kickstart the development of the semiconductor and display manufacturing ecosystem in India.
• Union Budget 2023-24 allocated Rs. 16,549 crore (US$ 2 billion) for the Ministry of Electronics and Information Technology, which is nearly 40% higher on year. The budget for FY23 had allocated Rs. 14,300 crore (US$ 1.7 billion) for the IT ministry.
• As per the Union Budget 2023-24, an outlay of Rs. 4,795.24 crore (US$ 580 million) was allocated for the Digital India program, which is a flagship programme of the Government of India, with a vision to transform India into a digitally empowered society and knowledge economy.
• The Indian electronics manufacturing industry is projected to reach US$ 520 billion by 2025.
• India has been one of the largest consumers of electronic products specifically in Asia-Pacific due to factors such as rising per capita disposable incomes and consumption in the past decade.
• In July 2023, electronics maker Elista announced that it would invest Rs. 100 crore (US$ 12.1 million) in Andhra Pradesh to set up a manufacturing unit for Smart LED TVs, smartwatches, audio speakers, and large appliances.
• US CHIP design major Advanced Micro Devices (AMD) will invest up to US$ 400 million in India over the next five years and will set up its biggest design facility in the country.
• In March 2022, Reliance announced that it would invest US$ 220 million in a joint venture with Sanmina Corp, a US-listed company for making electronic products in the Asian countries.
• Fujitsu, a Japanese IT hardware manufacturer, announced its foray into the Indian consumer laptop market in July 2021, with plans to sell 10,000 premium notebooks in the country by March 2022.
• In FY23, India manufactured wearables such as earphones and smartwatches worth Rs. 8,000 crore (US$ 976.7 million), boosted by the implementation of a phased manufacturing plan (PMP). The industry is hopeful of doubling the production to Rs. 15,000-17,000 crore (US$ 1.83-2.07 billion).
• The Electronics System Design & Manufacturing (ESDM) is broadly segregated into—Electronics System and Electronics Design.
• India is one of the largest consumer electronics markets in the Asia Pacific Region and is home to considerable talent for electronic chip design and embedded software. India has committed to reach US$ 300 billion worth of electronics manufacturing and exports by 2025-26.
• Major Government initiatives such as ‘Digital India’, ‘Make in India’ and supportive policies including a favorable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.

Growth Drivers:

• The Indian startup ecosystem is experiencing a surge over the years, due to rapid technological advancements, increasing internet penetration, growing digital infrastructure, rising startup culture, government initiatives like Digital India, Make in India, and Startup India, as well as a large pool of skilled workforce.
• India has witnessed an exceptional surge in the creation and funding of startups as the country has solidified its position as a major global centre for innovation and businesses. However, securing adequate funding remains a significant task for startups, often leading to survival challenges.
• In 2023, the funding scenario for tech startups turned bleak amid the global uncertainty, witnessing a 67% YoY plunge in total funding to US$ 6.0 billion. This decline came after the peak funding levels observed in 2021 (US$ 24.1 billion) and 2022 (US$ 18.2 billion), where investors displayed confidence in Indian tech startups. In 2023, the number of deals declined to 824 However, the decline appears to be cyclical than a long-term trend.
• In FY23, the exports of electronic goods were recorded at US$ 23.57 billion as compared to US$ 15.66 billion during FY22, registering a growth of 50.52%.
• During April-October 2023, the imports of electronics goods stood at US$ 51.33 billion and exports stood at US$ 15.48 billion.
• India’s export of electronic goods rose tremendously by US$ 6.3 billion in 2013-14 to US$ 23.57 billion in 2022-23. Mobile phones, IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics and auto electronics are key exports in this sector.
• The Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025.
• India emerged as the second-largest manufacturer of mobile phones in the world, with a production value of mobile devices reaching US$ 44 billion in 2023 from US$ 3 billion in 2014-15.
• In addition, the consumer electronics and appliances industry in India is expected to become the fifth largest in the world by 2025; this is noticeable for LCD/LED TVs, which witnessed more than 2x growth (by volume) in the past five years.
• Factors such as high internet penetration rate (over 820 million users) and second-largest global smartphone manufacturer boosted penetration of electronic products to the large potential consumer base, which in turn is driving ESDM market.
• The cumulative FDI equity inflow in the Electronics industry is US$ 4.76 billion during the period April

New schemes to promote electronics manufacturing

• The inaugural Future Skills Summit was organized by the Ministry of Electronics and Information Technology (MeitY) in collaboration with the National Institute of Electronics and IT (NIELIT) in Guwahati on February 15, 2024.
• Union Budget 2023-24 allocated Rs. 16,549 crore (US$ 2 billion) for the Ministry of Electronics and Information Technology, which is nearly 40% higher year on year. The budget for FY2023 had allocated Rs. 14,300 crore (US$ 1.7 billion) for the IT ministry.
• The Government attaches high priority to electronics hardware manufacturing, and it is one of the important pillars of both “Make in India” and “Digital India” programme of Government of India.
• The National Policy on Electronics (NPE) 2019 envisions to position India as a global hub for ESDM by encouraging and driving capabilities in the Country for developing core components, including chipsets and by creating an enabling environment for the industry to compete globally.
• In September 2022, MeitY Startup Hub (MSH), an initiative of the Ministry of Electronics & Information Technology (MeitY), and Meta announced the launch of an accelerator programme to support and accelerate XR technology startups across India.
• By 2030, ADIF, a think tank for IT start-ups, aims to put India among the top three start-up ecosystems in the world, with emphasis on expanding the knowledge base, encouraging collaboration and outlining the best policies.
• As per Union Budget 2022-23, the Ministry of Electronics and Information Technology (MeitY) has been allocated Rs. 14,300 crore (US$ 1.85 billion). In the allocated budget, revenue expenditure allocation is Rs. 13,911.99 crore (US$ 1.8 billion) and capital expenditure allocation is Rs. 388.01 crore (US$ 50.4 million).
• Ministry of Electronics & Information Technology (MeitY) has announced “Scheme for Promotion of Semiconductor Eco-System” in India with a massive outlay of Rs. 76,000 crore (US$ 9.48 billion) in 2022.
• Under the production-linked incentive (PLI) scheme for IT Hardware Products, the Ministry of Electronics and Information Technology has approved 14 qualified applicants. To manufacture these products in India, the government will offer incentives of US$ 983.76 million over the next four years. In this duration, production worth US$ 21.62 billion and exports of US$ 8.06 billion are expected.

Business Data of Osel Devices

Verticals of Osel Devices

• LED Display systems: The products segment includes: o Indoor LED Solutions
  • Outdoor LED Solutions
  • Transparent LED Solutions
  • Customized LED Solutions
• Hearing Aids: The products segment includes:
  • Standard Behind-the-Ear (BTE) Hearing Aids
  • Mini Behind-the-Ear (BTE) Hearing Aids
  • Receiver-in-the-Ear (RITE) or Receiver-in-Canal Behind-the-Ear (RICTE) Hearing Aids Our
• Company are also in the development stage for the below category of hearing aids:
  • In-the-Ear (ITE) Hearing Aids
  • Completely-in-the-Canal (CIC) Hearing Aids
  • Invisible-in-the-Canal (IIC) Hearing Aids
  • Receiver-in-Canal (RIC) Hearing Aids
  • In-the-Canal (ITC) Hearing Aids

Product wise break-up of Osel Devices

(₹ in lakhs)

Revenue contribution from Geography presence of Osel Devices

(₹ in lakhs)

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Customer dependency of Osel Devices

(₹ in lakhs)

Supplier dependency of Osel Devices

(₹ in lakhs)

Capacity Utilisation of Osel Devices

Customers of Osel Devices

• For LED display systems:
  • Government:
    • Defence Research and Development Organisation (DRDO)
    • Indian Space Research Organisation (ISRO)
    • National Aluminium Company Limited (NALCO)
    • NBCC (India) Limited
    • The Gauhati High Court
    • Haridwar-Roorkee Development Authority
    • Raipur Smart City
    • Indian Oil Corporation Limited
    • Bharat Petroleum Corporation Limited
    • Hindustan Petroleum Corporation Limited
  • Broadcasting:
    • Akashvani
    • Doordarshan
    • India TV
  • Education
    • Patliputra University
    • Sharda University
    • IIT Roorkee
    • Tilka manjhi Bhagalpur University
    • Noida Institute of Engineering Technology
  • Hospitality
    • Lord of the drinks
    • Shiloh
    • Dragonfly
    • Worldmark
    • Waka Waka
  • Healthcare
    • Shri Ganga Ram Hospital
    • Sharda Hospital
    • Dr Ram Manohar Lohia Hospital & PGIMER
    • Centre for Sight
    • Dr. B.R Ambedkar Medical College & Hospital
  • Retail
    • Adidas
    • Rado
    • Dell Technologies
    • Levis
    • Giant Manufacturing Co Limited
    • Hira Panna Jewellers
    • Birkenstock
    • Kushal’s (Fashion Jewellery)
    • Starkey
    • Gold Dozo Gym
    • Belden
    • Trecento Residences
    • Royal Salute
    • Best Hearing Aids in India (EarKart)
    • Premium Lifestyle & Fashion India Private Limited (Aptronix)
    • United colors of Benetton
    • Noida Bayaweaver
    • Mio Amore
    • Smart Bike
  • Religious Institutions
    • ISKCON
    • Shri Mata Vaishno Devi Shrine Board
    • Golden Temple, Amritsar
  • Entertainment
    • PVR INOX Limited
    • Lulu Mall
    • Star Cinemas
• For Hearing Aids
  • Government:
    • Artificial Limbs Manufacturing Corporation of India (ALIMCO)
    • National Institute for the Empowerment of Persons with Visual Disabilities (NIEPVD)
  • Private Sector:
    • Earkart Private Limited
    • Rogan Clinic

Peer companies comparison of Osel Devices

Group companies of Osel Devices

• Osel Technology Private Limited
• Limitless Mobility Solutions Private Limited

SWOT ANALYSIS of Osel Devices

• Strengths
  • State-of-the-art manufacturing plant equipped with latest machineries and technology to design, manufacture and assemble our products
  • Experienced and technically advanced manpower
  • Established relationships with our clients reflected by repeated orders.
  • Strong brand recognition and reputation for excellence in manufacturing of customized products.
  • Strong relationship with international suppliers of raw materials.
  • Well-equipped R&D and quality control process
• Weakness
  • Dependence on a small pool of key personnel
  • Limited financial resources, which may hinder the ability to invest in new technologies or talent
  • Limited marketing resources, which can make it difficult to compete with larger players with greater marketing budgets
  • Dependence on import of raw materials
• Opportunities
  • Government initiative and focus on digital India
  • Conversion of static OOH to digital DOOH for advertisement industry
  • Increasing demand for digital signages 6.3% of population suffering from hearing loss needing hearing aids.
  • Significant opportunity for domestic manufacturer of hearing aids having low cost.
• Threats
  • Intense competition from large players
  • Rapidly evolving technology, which requires continuous investment to stay competitive
  • High import of raw materials from China
  • Regulatory changes or legal challenges, which can impact the ability to distribute content or access certain markets

Business risk factors of Osel Devices

• Osel Devices Company is reliant on the demand from the healthcare industry for a significant portion of our revenue. Any downturn in the healthcare industry or an inability to increase or effectively manage our sales could have an adverse impact on our Company’s business and results of operations.
• The commercial success of Osel Devices products depends to a large extent on the success of the products of our end use customers. If the demand for the end use products in which our products are used as a raw materials declines, it could have a material adverse effect on business, financial condition and results of operations.
• Osel Devices depend on a few customers of our products, for a significant portion of our revenue, and any decrease in revenues or sales from any one of key customers may adversely affect business and results of operations.
• Osel Devices generate Osel Devices major portion of sales from our operations in certain geographical regions. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.
• Osel Devices have a limited operating history in respect of our products, which may make it difficult for investors to evaluate our business and prospects.
• Osel Devices highly depend on our key raw material and a few key suppliers who help us procure the same. Osel Devices Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event we are unable to procure adequate amounts of raw materials, at competitive prices our business, results of operations and financial condition may be adversely affected.

Financials of Osel Devices

Key Performance Indicators of Osel Devices

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Assets & Liabilities of Osel Devices

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Profit & Loss of Osel Devices

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Cash Flow of Osel Devices

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Capital structure of Osel Devices

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IPO Details

Osel Devices IPO Details

Object of the issue of Osel Devices

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Litigation involved in Osel Devices

Gray Market Premium

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