During a chat with Nitisha Dubey from EFY, Mohammed Iqbal, CEO of Technomake Electronics Pvt Ltd, talks about PCB assembly and major customer focus areas.
Q. Kindly talk about Technomake and its comprehensive electronic manufacturing services.
A. We are a contract manufacturer specialising in electronic manufacturing services (EMS). Unlike traditional contract manufacturers, we offer comprehensive end-to-end support. This includes design, prototyping, pilot manufacturing, testing, and assembling. We are flexible in our services, capable of collaborating with customer-supplied materials or handling the entire process from start to finish. Additionally, we can manage the entire bill of materials (BOM) procurement process, from purchasing components to manufacturing and assembling the final product. Our parent company was founded in 2007, and our operations in India started in Kerala in 2021.
Q. How do you approach acquiring a new business?
A. We acquire customers through our extensive contacts and solid reputation. With almost 25 years of experience, including work as an EMS consultant and MNC coordinator at SFO Technologies in Kerala, serving clients such as GE Medical, Philips, and DRDO, we have established a strong presence in the market. Our approach has been successful, with clients approaching us knowing our capabilities, and we are actively seeking volume business. We have several potential clients in the pipeline, a testament to our commitment to growth and expansion.
Q. Do you perform PCB assembly in large batches or solely on demand?
A. If a customer requests 1000 units, we fulfil exactly that quantity. Due to our contractual agreements and NDAs with these customers, we cannot exceed the specified amount. Our commitment to these agreements is paramount, and we cannot compromise on this.
Q. How do you customise products to match customer specifications?
A. We create and package products according to our customer’s specifications, meeting their aesthetic preferences and including any required pamphlets or brochures so that the final product appears as their own.
Q. Who owns the IP?
A. If a customer provides their product’s data, their intellectual property (IP) is retained. When we design for a customer, their IP remains theirs, and we cannot disclose it to anyone else. For all customers, we sign a non-disclosure agreement (NDA), and some customers may require additional agreements. If they sign that the IP belongs to them, we will provide everything related to the product to the customer exclusively. We cannot retain or reproduce the same product without their permission.
Q. Do you focus solely on the medical and automotive sectors?
A. The medical and automotive industries are booming, with the global electric vehicle (EV) sector in automotive experiencing significant growth. Previously reliant on Chinese imports, there is a global trend towards local manufacturing, particularly in countries like India. This shift has opened opportunities, especially for small companies entering the EV market. The medical sector is also moving towards local production, reducing reliance on Chinese imports. Aerospace, however, remains challenging due to high volume and certification requirements. Consumer products are unattractive due to low profitability and stiff competition. Our focus remains on the automotive and medical sectors due to their growth potential.
Q. How does your team approach potential clients?
A. Our marketing team generates leads online and through business contacts. We approach clients with presentations to showcase our expertise, slowly building our market presence. Despite being young, we have clients in Jordan, are discussing with US clients, and have engagements in Chennai and Bengaluru. We also serve component manufacturers in Bangalore for semiconductor verification boards.
Q. What is your process for sourcing and matching products to customer specs?
A. We source products globally, including from India, China, the US, and Singapore, mainly through our distributors in India. We procure components based on customer specifications. We suggest a part number for customer approval to ensure we meet their requirements. These transactions are governed by agreements to avoid potential losses.
Q. How does quality and pricing vary based on product complexity?
A. Our experience ensures good quality, achieving a 99.9% yield with existing customers. Pricing depends on market factors and product complexity. Complex, low-volume products tend to have higher prices, while simpler, high-volume products are cheaper. Pricing considers component complexity, assembly time, solder quantity, and other aspects. We are always open to negotiation and positive discussions regarding pricing.
Q. How do you showcase pricing, efficiency, capacity, and capability to customers?
A. We need to closely examine pricing and understand how our competitors are pricing their products. It is crucial to assess their efficiency and capacity to compete effectively. Convincing customers in this sector is challenging. We must bring them to our facilities to showcase our capabilities and reality and gain their acceptance. Remote communication doesn’t work well in this business, and we need to demonstrate our capabilities in person for customers to be impressed.
Q. How does your company approach innovation and customisation for customers?
A. We innovate according to customer customisation needs, leveraging our expertise to offer efficient and cost-effective solutions. By designing fixtures tailored to their requirements, we address quality issues directly, ensuring optimal yield. Like with PCB design, we provide recommendations for manufacturing improvement, enhancing yield and reducing costs for our customers.
Q. What type of vendors or partners is your company seeking?
A. Currently, we are not actively seeking partnerships. We view vendors as crucial components, such as PCBs, mechanical parts, and plastic items. We are also prepared for consumables. While we cannot guarantee partnerships, we are open to collaborating with MNCs interested in sharing and working together.
Q. Do you have any plans to open additional manufacturing facilities in the future?
A. Our decision to establish a factory in Bengaluru depends on the potential business volume. If customers indicate significant business opportunities, we will consider opening a facility in Bengaluru; otherwise, we might opt for Delhi or another location in India. Our choice of location depends entirely on business prospects and customer visibility, with Bangalore being a strong contender if it promises substantial business, possibly exceeding 50% to 60% of our total.
Q. Do you service/repair new requests or focus on existing suppliers?
A. We provide services exclusively to existing suppliers. For new service requests, we require all details and testing solutions. Servicing a single product can be challenging, but we have all the necessary test equipment and components readily available for existing service products. If a customer provides these items, we are open to external servicing. However, servicing existing customers is more straightforward for us.
Q. What was your business’s growth last fiscal year and the upcoming two-year plan?
A. We are a one-year-old company that has experienced significant growth. Over the next two years, we plan to achieve a turnover of 2 billion. By the end of this year, we aim to reach a turnover of 500 million, followed by 1 billion next year. Last year, our turnover was only two crores due to our small size and just starting. We managed only 100 million then because we purchased no components; we used whatever the customer provided. However, we have now begun transitioning to a turnkey process. This means we will buy all the components ourselves and sometimes offer design services to customers.
Q. What is your strategy for customer and product growth?
A. In 2023, we had about 150 customers, but we reached out to around 450 and dealt with 300 to 400 different types of products. This year, we are focusing on more products in volume. We do not want to expand our customer base too much. Instead, we aim to have a product range of 1000 to 1500 varieties with volumes ranging from 10000 to millions. So, we are now looking for customers with a large volume.
Q. How do you manage waste disposal and compliance?
A. Regarding waste management, we have signed agreements with government-approved vendors for collecting e-waste and other types of waste, ensuring proper disposal and compliance with pollution control regulations.
