The company believes the move will help it complete the electronics ecosystem in the country. It already has subsidiaries for design and component supply.
Hynetic Electronics Pvt Ltd (Hynetic) will set up its electronics manufacturing company in India. Shashank Donthi, Director of Global Business Development, Hynetic, in an exclusive conversation with the Electronics B2B team, shared that the manufacturing line(s) will be set up in two to three years from now.
“We are a bootstrapped company and will take the proper calculated approach. On completion, it will serve national and international clients,” he said. Donthi did not reveal the investment the company will be making t
To be based in Bangalore, this new subsidiary of Hynetic might also see investment from “strategically” essential parties. Into demand and distribution of anything around semiconductor components from the start, the company set up its own design house later.
Completing the ecosystem
After being set up, Donthi shared that the company will strengthen Hynetic’s gameplay in the IoT and semiconductor component space. At the moment, the company has various manufacturing partners that it guides various of its clients to.
“Robotics, smart electronics, wearables, automotive electronics, and everything else under the IoT umbrella that has to do with the modern consumer is what we want to go deeper into,” Donthi explained.
According to DataHorizzon Research, the Cellular IoT Module Market size was valued at USD 5.8 Billion in 2022 and is expected to reach USD 20.2 Billion by 2032 at a CAGR of 13.4%.
The new manufacturing centre will be used for prototyping contract manufacturing of orders coming from Hynetic and third parties. Donthi highlighted that the new company will be closer to establishing an ecosystem.
Hynetic currently has SemiKart and AqTronics as two other subsidiaries, where the former focuses on supplying component orders that are small in numbers, and the latter concentrates on big numbers.
“We already have design and supply verticals taken care of. Manufacturing is the only thing that remains the big part of the puzzle to solve. We will do the same with establishing the new company,” he said.
Increasing International Revenue
With the new manufacturing unit, the company aspires to increase the share of its international business in its overall revenue figures “significantly”. Also on the radar of Hynetic is growing its base of clients in India.
“Over 80% of our current revenue comes from India business. We want to focus more on new segments in India and the international market,” Donthi said. Yulu, Bajaj, Crompton, Reliance, Wipro, and Havells are some companies that are Hynetic clients.
In automotive, the company does not intend to play in the legacy sector but in the new forms of mobility driven by earth-friendly fuels such as electricity. “IoT and semiconductors have been our focus area from the beginning, and that’s what we will focus on for all the segments and industry verticals we want to serve,” Donthi highlighted.
Having a workforce of around 115 people, he sees a substantial jump in this number once the manufacturing plant becomes operational. Donthi also highlighted a possible significant jump in the annual revenue figures and year-on-year growth for Hynetics after the manufacturing starts at its new centre.
“Most of the people in our workforce right now are concentrated on design. However, manufacturing requires a large workforce. I think we will employ close to 250 people once manufacturing starts in full swing,” he said.
The company reported revenue of around $11 million last fiscal, and its current order book suggests it will close this one north of $16 million. As per Donthi, Hynetics has been growing 30 to 35% YoY since the last few fiscal years. Notably, the distribution business of Hynetics was acquired by Arrow Electronics in 2008.