Our impact goes beyond financial metrics, encompassing the innovations
we drive, the industries we transform, and the technological landscape we shape. I extend
my heartfelt gratitude to our investors; their confidence in our vision has been
instrumental to our success. With a robust foundation and a clear path ahead, we are
poised to enhance our capabilities, expand our reach, and synergise future technologies.
Dear Shareholders,
I am proud to present the Annual Report of Kaynes Technology India
Limited for FY 2023-24. This year marks a significant milestone in our journey, showcasing
our growth and adaptation in the dynamic world of electronics system design &
manufacturing. Our impact goes beyond financial metrics, encompassing the innovations we
drive, the industries we transform, and the technological landscape we shape. I extend my
heartfelt gratitude to our investors; their confidence in our vision has been instrumental
to our success. With a robust foundation and a clear path ahead, we are poised to enhance
our capabilities, expand our reach, and synergise future technologies. This report offers
insight into our achievements, the evolving electronics industry, and our strategies for
delivering cutting-edge solutions and sustainable growth in the coming years.
Global and Indian Economic Landscape
The past year witnessed notable economic transformations and hurdles on
the global stage. Globally, nations struggled with persistent inflation, ongoing
geopolitical uncertainties, and the lingering effects of supply chain disruptions. These
factors collectively shaped market trends and economic policies. Against this backdrop of
global challenges, the Indian economy exhibited exceptional resilience and dynamism,
registering a robust provisional growth rate of 8.2%. Propelled by robust domestic demand,
increased infrastructure investments, and strategic government initiatives, India's
economic growth outpaced many major economies. The country's expanding digital
infrastructure, growing manufacturing sector, and rising export capabilities further
solidified its position as a key player in the global economic landscape. This underscores
its potential for sustained growth in the coming years.
Operating Environment
India's economic landscape has shown remarkable resilience amid global
challenges, solidifying its position as a strong player among emerging market economies.
India's position as a leading export hub and attractive investment destination is gaining
momentum. This growth is driven by strong economic fundamentals and strategic government
initiatives. Key policy updates, including changes to FDI regulations and the introduction
of the Production Linked Incentive (PLI) scheme, are fostering growth across various
sectors.
Amid this favourable environment, the global electronics system design
and manufacturing (ESDM) industry is on track to reach a trillion-dollar valuation, driven
by rising demand across sectors like automotive, consumer electronics, IT, and
telecommunications. India's ESDM market, bolstered by government support and a highly
At Kaynes Technology, we are strategically positioned to capitalise on
the industry tailwinds. Our expertise in advanced packaging technologies, large-scale
production capabilities, and unwavering commitment to R&D place us at the forefront of
innovation. By offering tailored solutions and maintaining operational efficiency, we are
dedicated to supporting India's vision of becoming a global leader in electronics
manufacturing. skilled workforce, is expected to grow significantly, achieving a CAGR of
34%. At Kaynes Technology, we are strategically positioned to capitalise on the industry
tailwinds. Our expertise in advanced packaging technologies, large-scale production
capabilities, and unwavering commitment to R&D place us at the forefront of
innovation. By offering tailored solutions and maintaining operational efficiency, we are
dedicated to supporting India's vision of becoming a global leader in electronics
manufacturing.
Key Strategic Goals
Our strategic goals are aligned with our vision to become a
billion-dollar revenue company by FY 2027-28. This ambitious target will be achieved
through a combination of expanding our ESDM offerings and venturing into new areas such as
Outsourced Semiconductor Assembly and Test (OSAT) and Printed Circuit Board (PCB)
manufacturing. In FY 2023-24, we have made significant strides towards these goals,
demonstrating our competitive edge through innovative products and customer-centric
solutions.
Our R&D initiatives have led to the development of cutting-edge
products that meet the evolving needs of our clients, which have been well-received in the
market. This reinforces our reputation as a leader in technological innovation.
Additionally, we have optimised our operations to enhance efficiency and reduce costs by
investing in state-of-the-art manufacturing facilities and automation technologies. In
response to global supply chain disruptions, we have strengthened our supply chain
management to ensure continuity and reliability by diversifying our supplier base and
implementing robust risk management practices.
Shaping a Sustainable Future
Our diversified product portfolio allows us to mark our presence in
several industries, including automotive, industrial, aerospace, defence, outer space,
consumer electronics, medical, railways, and IoT/IT. This not only shields us from the
volatile economic environment but also opens up numerous opportunities in both domestic
and global markets. As a leading end-to-end and IoT solutions- enabled integrated
electronics manufacturer, we are committed to advancing our expertise across the entire
spectrum of ESDM services.
We aim to sustain our accelerated growth trajectory by steadily
expanding our customer base in the rapidly growing ESDM market. With a focussed outlook
towards the future, we are dedicated to seizing the most promising opportunities in our
vicinity. This commitment drives us to continually upskill our workforce and invest in
cutting-edge infrastructure, including acquiring newer licenses, upgrading testing
equipment, and implementing advanced application software. Through continuous research and
development, we ensure our capabilities stay at the forefront of technological
advancements.
Our superior manufacturing infrastructure enables us to undertake
complex and high-value product manufacturing across diverse industry verticals.
Additionally, it offers the flexibility to adapt to variable or custom production volumes.
By repeatedly strengthening our capabilities, we strive to further maximise our deep
technical expertise to elevate our unique value proposition to newer heights.
Commitment to Quality and Innovation
We take pride in the establishment of an organisation that not only
survives adversity but thrives within it, continually strengthening its core with each
obstacle it encounters. Central to our success is our firm commitment to nurturing
enduring relationships with both suppliers and clients, serving as the foundation upon
which our achievements are built. Presently, our network spans over 1700 suppliers,
ensuring diversified sourcing for each component and strategic collaborations with
specialised dealers across various niches. Moreover, our outstanding track record is
exemplified by the enduring 30 year partnerships maintained with our top 25 suppliers.
Looking ahead, we remain committed to strengthening our supply chain resilience by
nurturing and expanding these invaluable alliances.
Our Commitment to Sustainability and CSR
At Kaynes Technology, sustainability and corporate social
responsibility (CSR) are integral to our ethos and operations. We are committed to
fostering sustainable development by integrating environmental stewardship and social
accountability into our business practices.
Our comprehensive CSR initiatives focus on community enhancement,
healthcare, education, and cultural preservation. This includes adopting villages in
Karnataka to improve infrastructure and healthcare, supporting the education of
underprivileged children. Additionally, our environmental efforts prioritise reducing our
carbon footprint, efficient resource management, and compliance with global standards.
Through these endeavours, we aim to drive positive societal impact and contribute to a
more sustainable future.
Our Employees
Our employees are the backbone of Kaynes Technology and the key drivers
of our success. Their expertise, dedication, and innovative spirit are the key elements
that enable us to remain at the forefront of technological advancements. We are committed
to fostering a work environment that nurtures talent, encourages professional growth, and
recognises the invaluable contributions of our team.
By investing in continuous learning and development opportunities, we
empower our employees to achieve their full potential and contribute to the Company's
long-term success. We believe that by prioritising their well-being and professional
growth, we create a culture of excellence that drives our collective achievements, which
has once again enabled us to successfully secure the GPTW certification.
Expression of Gratitude
To conclude, I would like to express my sincere gratitude to all our
esteemed stakeholders. As we start a new chapter in our journey, we stand on the brink of
endless possibilities, eagerly anticipating the future. With the invaluable guidance of
our esteemed Board of Directors, we are well-poised to embrace any challenges that come
our way fearlessly. Moving ahead, we aspire to play a larger role in shaping the community
to which we belong, leaving an indelible mark in every corner we touch. As we navigate the
dynamic landscape of the technology industry, we remain steadfast in our commitment to
delivering lasting value to our esteemed stakeholders.
With best wishes,
Savitha Ramesh