Introduction:

Aimtron Electronics is a company that deals with electronic design and manufacturing services. They are known as a global leader in this field, working on innovation in both consumer and industrial technology sectors.

Here’s a quick breakdown of Aimtron Electronics:

• Established in 2011.
• Based in India, with manufacturing facilities in Vadodara and Bengaluru .
• Offers PCB Assembly and Electronic Design and Manufacturing Services.
• Recently had an IPO (Initial Public Offering) that opened on May 30th, 2024 and closes on June 3rd, 2024 .

Aimtron electronics: Overview:

 are engaged in the business of providing products and solutions towards electronics system design and manufacturing (“ESDM”) services with a focus on high value precision engineering products. We provide product and solutions right from printed circuit board (“PCB”) design and assembly to the manufacturing of complete electronic systems (“Box Build”), to certain domestic and global manufacturers located in India, United States of America, Hongkong, United Kingdom, Spain, Mexico. Our solutions primarily comprises of: (i) printed circuit board assembly (“PCBA”), (ii) any box build assemblies in addition to finding its application in battery management systems used in electrical vehicles (iii) design solutions offering end to end services.

History of Aimtron electronics

• Founded in April 2011: The company was originally incorporated as a private limited company under the name “Aimtron Electronics Private Limited”.
• Early Focus: Their initial offerings concentrated on printed circuit board (PCB) design and assembly.
• Growth and Expansion: Aimtron has expanded its expertise to a comprehensive range of Electronic System Design and Manufacturing (ESDM) services, including complete design solutions and box build assemblies.
• Conversion to Public Limited Company: In October 2023, Aimtron Electronics Private Limited transitioned to a public limited company, changing its name to “Aimtron Electronics Limited”.
• IPO in May 2024: As of today, May 31, 2024, their Initial Public Offering (IPO) is open for subscription until June 3rd, 2024.

They have grown from a PCB specialist to a full-fledged ESDM service provider catering to diverse industries.

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Directors of Aimtron electronics

• Mukesh Jeram Vasani
• Nirmal M. Vasani
• Sharmilaben Lakhanbhai Bambhaniya
• Dr. Ashwani Kumar Srivastava
• Prerana S. Bokil
• Nischal Arvindbhai Sanghavi

Promoters of Aimtron electronics

• Mukesh Jeram Vasani
• Nirmal M. Vasani

Strategy of Aimtron electronics :

• Cater to more end-use industries
• Continue to reduce operating costs and improve operational efficiencies
• Increase our geographical reach and expand our customer base
• Expand our Manufacturing facility towards backward integration

Industry Outlook:

India, today, is a major player in the global electronics manufacturing industry. The country is rapidly becoming an electronics manufacturing hub, with the sector expected to rise to $ 300 billion by 2025-26. This growth can be attributed to the government’s push to promote domestic electronics manufacturing, which has led to increased investment and the creation of new jobs. The global electronics manufacturing services (EMS) market is projected to reach $ 1145 billion by 2026, registering a CAGR of 5.4% during the forecast period 2021-2026. From $ 9.8 billion in 2021, India’s domestic demand for consumer electronics is seeing significant growth and is expected to touch $ 21.18 billion by 2025.

Regional Outlooks

• East Asia and Pacific:  Growth is projected to decelerate to 5.1% in 2022 before increasing slightly to 5.2% in 2023.
• Europe and Central Asia: Growth is forecast to slow to 3.0% in 2022 year and 2.9% in 2023.
• Latin America and the Caribbean: Growth is projected to slow to 2.6% in 2022 before increasing slightly to 2.7% in 2023.
• Middle East and North Africa:  Growth is forecast to accelerate to 4.4% in 2022 before slowing to 3.4% in 2023.
• South Asia: Growth is projected to accelerate to 7.6% in 2022 before slowing to 6.0% in 2023.
• Sub-Saharan Africa:  Growth is forecast to accelerate slightly to 3.6% in 2022 and rise further to 3.8% in 2023.

Market size:

Medical & Healthcare equipment: The government has come up with multiple initiatives and policies to promote India’s medical device sector. It was recognised as a focus sector in 2014 by the government during the Make in India campaign. The size of the Indian medical devices market is estimated at Rs. 90,000 crore (US$ 11 billion) in 2022 and is expected to grow to US$ 50 billion by 2030 with a CAGR of 16.4%. The Indian medical device market share in the global market is estimated to be 1.65%. India is the 4th largest Asian medical devices market after Japan, China, and South Korea, and among the top 20 medical devices markets globally. Between 2020-30 the diagnostic imaging market is likely to expand at a CAGR of 16.4%. Export of medical devices from India stood at Rs. 19, 803 crore (US$ 2.40 billion) in FY22. The exports of medical devices during April-December, 2022 stood at Rs. 20,511 crore (US$ 2.49 billion), and are expected to rise to US$ 10 billion by 2025. The Union Cabinet approved the National Medical Devices Policy, 2023 on April 26, 2023.

TRENDS:

India has clearly drafted its ambition to achieve US$ 120 billion worth of exports by 2026. The electronics sector’s journey has been very interesting. For instance, in 2014, India was highly focused on electronics import. Systematically, the Prime Minister of India, Mr. Narendra Modi, has strengthened the electronics sector over the past few years.

QUALITATIVE FACTORS of Aimtron electronics:

1. offer a diversified range of products.
2. Engineering expertise with complex product manufacturing capability
3. Long term and well-established relationships with OEM customers
4. Quality Assurance
5. Experienced and Qualified Management and Employee base
6. Stable financial performance.

Share holding pattern of Aimtron electronics:

Business 

Verticals

• Box Build Assembly (“Box Build”):
• Printed Circuit Board Assemblies (“PCBAs”):
  • Printed Circuit Board(PCB) Design and Analysis
    • Multiple PCB Design Software Tools
    • Complex Layout Design
    • Simulation and Analysis
    • Component Footprint Libraries
    • Design for Manufacturability and Test
    • Rapid Prototyping Services
  • Printed Circuit Board Assembly(PCBA)
    • Automated Screen printing
    • SMT pick and place automation
    • THT assembly
    • Ball grid array (“BGA”) assembly and rework
    • Double-and single-sided reflow
    • Wave and selective soldering
    • Automated Conformal coating
    • High mix / flexible volume production
    • Serialization and traceability
  • Inspection and Test
    • Solder paste inspection (“SPI”)
    • 3D Automated optical inspection (“AOI”)
    • Functional testing
    • X Ray Inspection
• Design solutions offering end to end services

Segments wise breakup

(Rs in lakhs)

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Product wise break-up:

(Rs in lakhs)

Revenue contribution from Geography presence:

(Rs in lakhs)

Facilities:

• Vadodara Factory
• Bangalore Factory

Capacity utilisation:

(SMT Components per Annum)(Million)

Customers concentration:

During the stub period ended on September 30, 2023 and for the FY 22-23, FY 21-22 and FY 20-21 our top 10 customers contributed to 92.46 %, 96.70 %, 94.66 % and 98.58 % of revenue from operations. largest customer, being our Group Company, Aimtron Corporation, USA contributed to approximately 54.69%, 55.99%, 49.42% and 7.78% of revenue from operations

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Peers

Business risk factors:

• business is dependent on the sale of our products and services to certain key customers including our Group Companies. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.
• operate in highly competitive markets, and the scale and resources of some of our competitors may allow them to compete more effectively than we can, which could result in a loss of our market share and a decrease in our net revenues and profitability.
• significantly dependent on revenue from sale of PCBA. An inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact our revenue from operations and growth prospects.
• have a history of net losses and our current profits do not reflect our future performance.
• business is dependent on our manufacturing facilities and we are subject to certain risks in our manufacturing process. Technology failures, Cyber-attacks, other security breaches or obsolescence, destruction, theft, breakdowns of our major plants or machineries or failures to repair or maintain the same could have a material adverse effect on our business, results of operation or financial condition may affect our business, cash flows, financial condition and results of operations.
• Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our sales, profitability, cash flow and liquidity.
• There are certain discrepancies/errors noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/ 2013. Moreover we are unable to trace some of our historical records. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
• have in the past been in non-compliance with certain reporting requirements under FEMA Regulations, within the prescribed period
• Any delay, interruption or reduction in the supply of raw materials to manufacture our products may adversely affect our business, results of operations, cash flows and financial condition.
• business is substantially dependent on our design and engineering teams to accurately carryout the estimates and engineering studies for potential orders. Any deviation during the execution of the order as compared to our estimates could have a material adverse effect on our cashflows, results of operations and financial condition.
• reliance on certain industries for a significant portion of our sales could have an adverse effect on our business.
• have had negative cash flows from operating activities in the past and may continue to have negative cash flows in the future.

Competitive strength

• “One Stop Shop” for electronics system design and manufacturing (“ESDM”) services.
• Myriad of product portfolio having applications across industry verticals
• Engineering expertise with complex product manufacturing capabilities.
• Long term and well-established relationships with customers
• Strong supply chain and sourcing network
• Experienced and Qualified Management and Employee base

Group companies

• Aimtron Technologies Private Limited
• Aimtron Foundation (India)
• Aimtron Corporation, USA
• American Pinball, Inc. USA
• Aimtron Systems LLC, USA
• Aimtron Design Studio Inc., USA

Financials:

Key Financial Ratios

Balance Sheet

(₹ In Lakhs)

Profit & Loss

(₹ In Lakhs)

Cash Flow

(Rs. In lakhs)

Share capitalisation

(₹ In Lakhs)

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SWOT

1. Strengths:
   • Aimtron Electronics Ltd was founded in 2011 and specializes in providing printed circuit board (PCB) design and assembly services¹.
   • They offer tailored Electronic System Design and Manufacturing (ESDM) products and solutions, covering the entire lifecycle from PCB design to complete electronic system manufacturing (Box Build)
   • The company has expertise in handling complex product problems
   • Strong relationships with Original Equipment Manufacturer (OEM) customers
2. Weaknesses:
   • Detailed financial information about Aimtron Electronics Ltd is not readily available in the provided sources.
   • Lack of diversification in product offerings could be a potential weakness.
3. Opportunities:
   • Aimtron Electronics can explore expansion into new markets or product segments.
   • The growing demand for electronic components and systems presents an opportunity for the company to expand its customer base.
4. Threats:
   • Intense competition in the electronics manufacturing industry.
   • Economic fluctuations and supply chain disruptions can impact business operations.

Ipo details

IPO issue detail

Why need funds

Litigations involved

Refer page numbers 209-211 of DRHP

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