With a robust plan in place, Thuse Elektronics aims to increase its market share

With a best-in-class manufacturing set up, Thuse Elektronics plans to increase its revenue and customer base to scale new heights

By Kartiki Negi

Monday, October 06, 2014:  Located in Pune, Thuse Elektronics Pvt Ltd, an electronics manufacturing services (EMS) company, is a first generation business started by Milind Thuse, the managing director of the firm. The company celebrated its silver jubilee in July 2014. Started with an investment of just Rs 10,000, the firm recorded a turnover of Rs 50 million in 2013-14 and aims to top that figure by a huge margin in FY 2014-15.

Milind Thuse believes that the company’s unique characteristics are its focus on design for manufacturing and testing, and its ability to provide total end-to-end solutions to its customers. The company has established its presence across various sectors such as home appliances, automotive, telecom, etc. “We are basically a total solutions provider for our customers, starting from the design to the end product. Our aim is to satisfy our customers with whatever services they demand in terms of designing, manufacturing, PCB assemblies or a complete solution,” says Milind Thuse.

The journey so far

Thuse Elektronics ventured into the market 25 years ago as a very small enterprise. But it was equipped with the best-in-class equipment. “We started EMS activities by offering total box-build solutions for Bajaj Auto, manufacturing of solid-state AC flasher indicators, and the association continued for eight years. This was a major breakthrough for the company. After this, we focused on customer development, by offering diverse services,” says Milind Thuse. With dedication and determination, the company managed to increase its customer base over the years, and today, with ambitious plans in place, it is gearing up to reach new heights.

However, this long journey has not been a cakewalk for Milind Thuse since he is not from a business family. Being a first generation entrepreneur, the biggest hurdle for him was raising finance for the firm. “The Indian economy was not in great shape, so the availability of working capital and funds was the biggest challenge. I believe that the environment today is much more conducive to setting up a new unit as there are many finance options available for expansion plans,” says Milind Thuse.

The company also faced several hurdles due to lack of guidance. “Initially, I had a very stubborn attitude about technical matters rather than commercial matters. Due to this, my manufacturing activities started very late and I also missed out on a lot of high volume business. There was no one to guide me on how to handle business situations from a commercial angle. Today, after 25 years, I feel that I could have grabbed many of the opportunities that came my way. I should have been more professional in handling difficult situations,” he adds. Milind Thuse believes that one gets to learn a lot from the mistakes committed. “The biggest lesson that I learned was not to depend on a single customer. For the first six to seven years, we were only doing business with Bajaj Auto, but when it moved into its own subsidiary, we suffered a major setback. So, now we have multiple customers in our portfolio,” he adds.

However, the company managed to sail through the testing times and emerged as a strong player. “When there is fire in the belly, one can stretch oneself to the maximum limit. Way back in 1991, I had also joined a management course to learn the management ethics and practices,” said Milind Thuse.

Strengths and limitations

Thuse Elektronics’ biggest asset is its quality manufacturing set up, which is rare for companies of its size. It operates from the single facility located in the industrial area of Bhosri in Pune, and is spread across 929 square metres.

The company offers three types of EMS services and considers these to be its strength. First, it provides end to end solutions where it designs products from scratch and goes on to provide the entire testing, prototyping and mass production services. Second, while the design part is done by the customer, Thuse Elektronics only takes on the manufacturing, including sourcing of components from global vendors. Third, while the customer provides all the material such as components, etc, Thuse Elektronics does the job work.

Talking about the company’s philosophy, Milind Thuse says, “I have always believed in fair business practices and justice to all. We believe in giving quality services, which in turn leads to the customer’s trust. This is a very important aspect that has turned out to be very fruitful in the long term.”

The last two to three years have been very crucial for the firm as it shifted to a new and bigger facility, attracting new customers. This was the time when Thuse Elektronics managed to get a foothold in the market. “We have achieved a lot on the capacity front as we’ve expanded our facility and added new equipment to ensure quality in the production process. Thuse Elektronics is a ISO 9001 certified company since past 10 years,” says Milind Thuse. He also gives credit to the company’s well trained staff members, who have been an asset to the company. “Our employees are an integral part of the company. They have contributed to its growth and are its major strength,” he adds.

Strategies to beat competition

Thuse Elektronics has been following the age old practice of not saying ‘No’ to any customer, no matter what the business volumes are. “Whatever the service required—whether a total turnkey solution, a box-build solution or job work activity, we are ready to do everything,” says Milind Thuse. This has proved to be beneficial. To back its technical expertise, the company has invested in R&D activities.

It has also built itself on the principles of transparency, honesty and quality. “I firmly believe in providing a better quality of service to the customers, while offering them value for their money,” he adds.

However, Thuse Elektronics lacks sufficient strength in the area of sales and marketing. So the company has come up with a robust plan to bridge the gap. “We have multi-directional plans that involve e-marketing, for which we have already linked our website with trade promotional portals like Indiamart, etc. We have also tied up with Google and have started getting a good number of customers. The company is in the process of building a good marketing team, which will take care of enquiries and convert them into business,” informs Milind Thuse.

Future outlook

The company has aggressive plans to increase its market share in the next two years. It is also a member of DEMA (Defence Electronics Manufacturers Association), through which it has acquired land in a greenfield cluster. “At present, the proposal has been put forward to the local authorities, but once it is through, we will be expanding our manufacturing base at these premises,” says Thuse.

Besides adding new equipment to its plant, the company now wants to delve deeper into technology. “We are not just an EMS business, we are also a technology driven company. So, our next level of activity is to get more into the manufacturing and designing areas, which involves a complete fusion of electronics, mechatronics and Web technology,” he adds.

 Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine