Donex Industries: On the fast track

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Customer satisfaction seems to be Donex Industries’ most bounteous award—one of its major strategies leading to its success. The fact that it has grown tremen­dously in a short span of three years is evident from the increase in its turnover—from Rs 350 million in 2006 to 700 million currently, and its man-power from 40 to 125. According to an Electronics Bazaar survey, Donex Industries Ltd is number four in the ‘top EMS companies of India’ list.

By Jesus Milton Rousseau S

Saturday, July 18 2009: Donex is engaged in the assem­bly of surface mount technology (SMT) printed circuit boards (PCB) and throughhole PCBs. It also man factures and trades in liquid crystal display (LCD) TVs, colour televisions, DVD players, home theatres, power inverters, UPS, moulded products and microwave ovens. The company provides complete solutions like total electronics manufacturing services (TEMS), design for manufacturability (DFM), engineering solutions, etc, and is working towards becoming a total solution provider.

One of the firsts

Donex, which was earlier in the TV assembly domain, entered the elec­tronics manufacturing services (EMS) business in 2006, when there was no major Indian enterprise in northern India to provide single window solu­tions to customers. The company is spearheaded by its chairman Vinod Kinger, who is armed with a BE (elec­tronics) degree from Madhav Institute of Technology and Science, Gwalior, and valuable work experience from Weston Electronics and Nikytasha (an Escorts Group company) in research and development (R&D) and quality control.

Donex had an inhouse facil­ity, which facilitated engineering, moulding, box build and EMS, so it started proffering TEMS in an effort to provide complete solutions to its clients. The company claims to be a pioneer in the field of moulding and box build solutions.

Many hurdles crossed

The enterprise encountered numer­ous hurdles on its way to success. It had to toil hard in order to make customers believe in its skills in the initial years. Kinger confides, “It took us a long time to convince customers and gain their trust. We faced many challenges but we closed all the open issues through our engineering capa­bilities. The reason behind our sus­tainability is the fact that we render complete solutions to customers and satisfy clients with punctual delivery of products.” Donex pays staunch heed to the quality of its products, due to which, new business partners keep joining the Donex bandwagon. “The addition of every new partner is a turning point for our business,” says Kinger.

The firm’s chief areas of focus are telecom, consumer electronics, auto­motive electronics, lighting, power backup and industrial electronics. “We are focusing on different verticals so that no single vertical should have more than 20 per cent of our total business,” Kinger adds.

The company’s operating principles are new product information, DFM and engineering. It has a sturdy supply chain management team and sources directly from companies like ST, etc.

Advantages in India

“We are glad to have a manufacturing base in India because this country is going to be a big manufacturing hub in the coming years,” enthuses the Donex chairman.

Donex possesses full flash auto insertion, SMT, manual insertion, dedicated lines for EMS, box build and moulding capabilities. The facility has a fully automatic conveyor line with all kinds of testing facilities, mould­ing machines, conveyorised paint shop, inhouse tool room for repairs and various PCB assembly (SMT and throughhole). The establishment is ISO 9001:2000 certified and a TUV certification is under process for 14001 and TS16949.

Commenting on the virtues of manufacturing in India, Kinger says, “There are a lot of advantages in India—it is a low cost manufactur-ing base; a number of people speak English; and technical manpower is available easily and in great numbers. Additionally, the country’s own con­sumption of these products is very high.”

“However, in northern India, ship­ment rates are exorbitant. Also, very few businesses are investing in R&D, which is the need of the hour, points out Kinger.”

Future plans

Donex plans to establish a global identity for itself by entering a joint venture with a precision sheet metal production company in USA. “The American company will give us plant machinery and technology and will buy back the finished product, which includes sheet metal and electronics,” reveals Kinger.

The business house wishes to be­come a world class TSP. It is primed to launch washing machines and refrigerators under its own brand name—‘Donex’ by 2010. “There is a vast market for consumer electronics and appliances in India as the pen­etration level is still very low in rural sectors,” concludes he.

Key facts at a glance  

Year of establishment

2006

Turnover (2011-12)

 Rs 700 million

Workforce

125

Manufacturing units and locations

Noida and Dehradun

Products range

Colour TVs, DVD players, power inverters, LCD TVs, etc

Certifications:

 ISO 9001:2000

Major clients

 Acme Telecom Ltd, Su-Kam, Haier, LG, Samsung, Delta Energy, Applied Electromagnetic, KLG, Ilgin, Tata Motor, BEL, etc

Contact details

Lucky Kinger, deputy MD, Donex Industries Lim­ited, D-100, Noida, Phase II exten­sion, Housiery Complex, Ph: 0120­2462148, 2462149; Fax: 2460699; Mob: 9891996657, 9810559198; E-mail: lucky@donexind.com

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

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