Salzer Electronics: at the forefront of India’s electrical manufacturing dexterity and innovation
When it comes to electrical and electronics market, India no longer lags behind any, the market size expected to grow to approximately USD 400 billion by 2020 from USD 69.6 billion in 2012. Thanks to profitable and BSE listed companies like Salzer Electronics established in 1985 to design and manufacture world-class Cam Operated Rotary Switches and increased purchasing power, India stands as one of the largest in terms of consumption. Over the years, the company has expanded from being a single product company to electrical solutions provider. Today the companies product portfolio includes, Rotary Switches, Complete range of Magnetics, Panel Accessories, Motor Control Products, Wires & Cables, Wire Harnesses and Enamalled Wires. The Company started its commercial production during August 1986. The market share for these products is continuously growing as a result of international approval and innovative designs.
The Guiding Force of the Board of Members
N. Rangachary who is also the Chairman and Managing Director of Salzer heads the Board of Directors. He is an ex IRS officer with over 40 years of experience under the Government of India, Ministry of Finance. He is also a Fellow Member of the Institute of Chartered Accountants of India, the Institute of Cost and Works Accountants of India, and the Institute of Company Secretaries of India. He has also served as a Chairman of Central Board of Direct Taxes and also first Chairman of Insurance Regulatory and Development Authority (IRDA) from 1997 till June 2003 and retired. Further, he served as an advisor to the Government of Andhra Pradesh – Finance department (2002 – 2008).
The core promoter is R Doraiswamy, an Electrical Engineer and technocrat entrepreneur with wide experience. Trained in Switzerland, he served in Textile Machinery Manufacturing industry for over two decades in various capacities. He has vast experience in the matters relating to Foreign Collaboration. Another promoter is 42 years old. D. Rajeshkumar, an Electrical Engineer and management post-graduate and also the Joint Managing Director and CEO of the firm and the son of R Doraiswamy. He also manages the philanthropic activities of the firm and is an active member of Entrepreneurs Organization Coimbatore Chapter.
P.K. Shah is a business man with wide experience in finance for the last more than three decades in Bangalore associated with the company for the last 19 years, and his business acumen and expertise in financial aspects contributed for the growth of the company all these years. He is a Director of Sasta Business form, Partner of Suk Electronics, Proprietor of Jayashree Industrial Accessories and also a Director at Salzer. L.Venkatapathy was the CEO of one of the leading Textile Machinery Manufacturers in the south viz., Textool Company, Coimbatore. He has vast expertise in General Management and Administration as well as in-depth knowledge in finance, which helped the company in its growth. Currently, he is Director in Salzer.
N Jayabal is an Electrical Engineer, having wide overseas experience for about 25 years in Canada & Germany and with good international connections. He is also a Director in Salzer Exports and has contributed to improving the market share for the products of the company in the Global Markets. P. Ramachandran, a Post Graduate in Economics with wide experience in the field and good contacts both in domestic and international markets, have contributed to improving the market share of the company all these years. He is the whole-time director at Salzer.
R Dhamodraswamy is a dynamic industrialist well known for being an active member of Lions Club. He is also one of the Directors on the Board of Micro Controls. He is also a partner of Coimbatore Engineering Works, engaged in the manufacture of Limit switches and micro control panel Boards, which are being used for textile machinery and for domestic purpose. Nirmal Kumar M Chandria is an Industrialist Promoter of a company in Aluminum Sector and associated himself with leading industries.
V. Sankaran has over 35 years of experience in reputed companies in various areas of finance and General Management. He has held the position of Co-Chairman of Equipment Leasing Association (India), and he was the Convener of Chennai Chapter of Association of Merchant Bankers of India. He has also served as a Director of Munoth Financial Services and Munoth Communications. S Baskarasubramanian is a qualified Company Secretary, and Fellow member of Institute of Company Secretaries (FCS) of India is having wide experience in the field of Company Law matters / Corporate Affairs. He is at present employed in Salzer as Director (Corporate Affairs) & Company Secretary.
Inside Panoramic view
Today Salzer has well equipped plant & machinery, captive tool room and a complete High Powered Test Lab in its five manufacturing units in Coimbatore with more than 1500 employees manufacturing a very wide range of Electrical, Electro-Mechanical and Electronic products and is a market Leader in Rotary Switches business with 30% market share, and largest producer in Asia as well as of Cable Ducts. They have also commissioned four windmills to generate power for captive consumption. It entered the Electrical Switchgear industry to manufacture the latest electrical products of international standards primarily for industrial purpose. The company has been continuously growing and is having a track record of profit earnings and dividend-paying Company since 1991 – 1992.
The company’s forte lies in manufacturing domestic and industrial improved versions of CAM Operated Rotary switches. Incorporating innovative designs of international standards has helped the firm expand its product range to include Load brake switches, Modular switches, Wiring ducts, Terminal connectors Toroidal transformers, Contactors, Relays, Wires & Cables, wire harnesses Limit and Foot Switches, Energy Savers, Three Phase Magnetics, Modular Switches MCB’s and DB’s. The firm’s has been constantly developing new products. Some of the new products developed in the last three years: – Contactors up to 105 Amps, Over Load Relays, Motor Protection Circuit breakers, Motor Starters (DOL and Star delta), Enameled Copper Wires, Wire Harnesses, Power Cords and Three Phase Dry Type Transformers.
They have also designed and manufactured several new technology products first of its kind in India like Screw less Rotary Switches, & Load Break Switches, Single Hole Mounting Switches, Rear Access Termination switches, Halogen Free Cable Ducts, Flexible Wire Ducts, and others.
Salzer has one patent for Rotary Switches, and five other patents for Single Phase Starter, Energy Saver System, Rotary switches, Wire Ducts, and Automatic Changeovers are under process. The company has registered its Trademark & logo “SALZER” in India, Malaysia, UK, Thailand and Iraq and the registration of words “SWITCH” & “CONNECTEC” in India are also under process. The firm has acquired the Prestigious ISO 9001, 14001 and 18001 Certification by NQA-UK for all its manufacturing plants. All the products of Salzer are CE marked and conforms to IEC Standard, and most of them are also Certified by UL – USA. Some of the products also carry CB Certificate. All products are RoHS Compliant. The upgraded products from Salzer’s strong In-house R&D facility recognized by the Ministry of Science and Technology, Department of Science and Industrial Research (GOI) are setting new market trends.
The Company entered into a technical and financial collaboration with Plitron Manufacturing Inc., Canada, in 1995 for manufacturing Toroidal Transformers until 2015. It has also made Partnerships for the branding of products for international companies. The firm also has an ongoing Technical Tie-up with Trafomodern Austria for specially designed highly reliable and efficient Three Phase Dry Type Transformers which finds application in Large Mega Watt size UPS, Solar Inverters, Windmills and industries like Railways, Machine Tools, Power generation and Marine. Salzer is the only approved supplier for Nuclear Power Corporation for Rotary Switches. Salzer is the largest supplier of switches to Indian Railways and has a full-fledged In-house R&D team of more than 50 Engineers to ensure continuous improvement in product specifications and utilities, besides new product developments.
The Company has a marketing tie-up since 1993 with Larsen & Toubro for the domestic market. The firm has its own distribution network of around 150 Stockists in the four southern states and Western states for Building Segment Products and another sent of 300 Dealers across India for various other Industrial Switchgear Products. Salzer has been exporting Rotary switches, Load Break Switches, Cable ducts, Terminal Connectors, Wire Harnesses and Toroidal Transformers in the International Market since 1990 to more than 40 countries covering Asia-pacific, Africa, Latin nations, Europe, Middle-East and North America and successfully competing against all major Chinese & European brands covering 20 -25% of the total turnover.
The Road Ahead
The total revenue of the firm in the FY17-18 was Rs 453 cr. Salzer aims to be a 1000 Cr company in the next three years with an objective to grow without losing their core value of becoming one of the most sought-after companies which wants to be admired for its people, performance and its values. The firm is adding Industrial and Automotive Sensors, Electric Vehicle – Charging stations, EV – Battery Management system in its new product line.Towards expanding into this area, the company plans to invest around Rs. 150 Cr over the next Four – Five years.