TVS-E boosts exports to drive growth; invests Rs 35 cr over three years
TVS-E has organised itself into four verticals while it caters to businesses such as the PoS, computing devices, product peripherals, tracking and tracing products and solutions.
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CHENNAI: The almost four-decade-old TVS Electronics (TVS-E), which has been seeing over 30 per cent compounded annual growth rate, is looking at neighbouring countries and Africa as export markets from the next financial year, a top official has said.
Known for its success in the point-of-sales (PoS) product business, the city-based company would like to focus on the export markets to drive its growth, said C Balaji, VP, PSG Business, TVS-E, as he gave an overview of the business, that has been registering 20 per cent-plus growth on a year-on-year basis.
TVS-E has organised itself into four verticals while it caters to businesses such as the PoS, computing devices, product peripherals, tracking and tracing products and solutions. The verticals are retail, government, BFSI (the banking, financial services, insurance) and logistics. “About 70 per cent of the revenues are accounted by government orders,” he said, noting that even the computing device segment has been showing good traction, through two or three key software customers.
Apart from strengthening its R&D capabilities after it became a separate business unit in 2013-14, TVS-E has transformed from designing, sourcing manufacturing, sales and support and maintenance to being an integrated or single-point solution provider for customers, especially the large format ones, he added.
Having consolidated its operations in Tumkur, Karnataka, where it has 75-acre facility, TVS-E has also invested on a SMT (surface mount technology) line to accelerate its nascent EMS or electronics manufacturing services operations. Hoping to capitalise on the Centre’s productivity linked incentive scheme, Balaji said the company has invested Rs 35 crore over the last three years and it plans to continue investing for upgradation work. Contract manufacturing activity on the 1 lakh-plus sq ft factory is to take off in 3-4 years.
The company spends about 3 per cent of its turnover on research and development work. The R&D engineering centre, housed in Bengaluru, is a 40-member strong team, which is to scale up to 75 or so in two years, Balaji said.
He also mentioned catering directly to customers has given rise to increased volumes, making a case for such an approach along with partnership channels to target 100 accounts.
