BPL hopeful of demand rise for printed circuit boards on govt's 'Make in India' push
BPL was one of the pioneers in PCB manufacturing in India as it had set up a plant in 1989 with technical assistance from Sanyo, Japan. Last fiscal, it had invested Rs 15 crore to fully upgrade the existing plant with automated machines from Japan and Taiwan, which increased output, improved quality and met the demanding standards of potential customers in the LED lighting, automotive and power conversion segments.
Homegrown electronics company BPL is sensing a good business opportunity for its printed circuit boards (PCB) manufacturing business after the government's 'Make in India' push. The size and quality of BPL's pipeline of new business opportunities in PCB have grown "considerably over the past few months", the Bengaluru-based company said in its Annual Report for FY 2019-20.
The company manufactures PCB used for power electronics, high-power motors cars and other products in which large electric current flows at its plant near Bengaluru. "With the government pushing for 'Make in India', there is expected to be a huge increase in demand for PCBs as this is an essential component of all electronic products," BPL chairman and managing director Ajit G Nambiar was quoted as saying in the report. Its strong order book reflects the success of BPL's focused strategy to expand its existing customer relationships and win new customers.
"Our customers trust us to manufacture PCB's for their Made in India products as our offerings provide a competitive advantage for them to minimise the risk to their supply chain by controlling the cost, quality and lead time of components," he said. It is focused on capitalising this favourable market recognition to drive continued revenue growth and profitability. BPL was one of the pioneers in PCB manufacturing in India as it had set up a plant in 1989 with technical assistance from Sanyo, Japan.
Last fiscal, it had invested Rs 15 crore to fully upgrade the existing plant with automated machines from Japan and Taiwan, which increased output, improved quality and met the demanding standards of potential customers in the LED lighting, automotive and power conversion segments. "This new PCB plant and our three decades of experience in this field will vastly improve BPL's prospects as a tier 1 PCB supplier to the electronics manufacturing services (EMS), lighting, power conversion and automotive industries," he said.
Several leading electronic and EMS manufacturers have inspected BPL's PCB plant and approved it to be a primary PCB supplier to them. Supplies have already commenced, and it is hoped that the entire plant capacity will be utilised within the next 6 months PCB mechanically supports and electrically connects electrical or electronic components using conductive tracks, pads and other features etched from one or more sheet layers of copper laminated on a non-conductive substrate. The company also operates into the consumer durables business and has an exclusive brand licence agreement with Reliance Retail in February 2020. As per the agreement, Reliance will trade in BPL branded products across its own stores, its distribution network and its own online platform. For FY 2019-20, BPL posted gross revenues of Rs 97 crore and reported an operating loss of Rs 17.36 crore (before provisions and taxation). It had reported a revenue of Rs 143.22 crore in FY 2018-19.
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