Equity Advisory

Are you looking for an honest, transparent and independent equity research and advisory? www.intelsense.in is run by Abhishek Basumallick for retail investors. Subscribe for long term wealth creation.

Tuesday 6 June 2023

Centum Electronics - Annual Report Summary

An Intelsense Knowledge Series - we regularly study interesting businesses. We keep profiling them. The idea is to keep learning and expanding our knowledge base.

Business Overview

Centum Electronics is an Indian company specializing in the design, development, and manufacturing of advanced electronics solutions for various industries. Established in 1994, Centum Electronics has grown to become a prominent player in the global electronics market.

The company offers a wide range of products and services, including electronic manufacturing services (EMS), system design, engineering, and manufacturing of high-reliability electronic and electromechanical products. Their expertise spans sectors such as aerospace, defence, industrial, medical, telecommunications, and automotive.

The company is focusing on expanding its customer portfolio domestically & internationally and enhancing customer penetration in high-growth industry verticals like Healthcare, Automotive, etc.

Centum is a leading Electronics industry partner and one of the private contractors for ISRO and is involved in the Design, Development, Qualification, and Production of electronic modules, subsystems, and systems for multiple applications in satellites and launch vehicles.

Their business can be divided into three essential segments:

  • Electronic Manufacturing Services,
  • Engineering R&D Services and
  • Build to specification services.

Electronic Manufacturing Services:

The company offers a wide range of manufacturing solutions from printed circuit board assemblies to complex finished products. It also provides system integration, hardware designs, Simulation tools and Prototyping services. By providing scalable manufacturing solutions and a flexible, proactive approach to managing the supply chain and lifecycle-related challenges, Centum helps customers achieve their goals of lower Total Cost of Ownership and reduced time-to-market among others.

Engineering R&D Services:

Engineering Services involve conceptualizing, designing and certifying of Electronic Hardware, Embedded Software, FPGA, Analog, Radio Frequency products, Power Electronics, etc. Centum Group has a global design strength of over 650 design engineers and for the last 25 years, the company has been helping customers turn their ideas into products.

Build to Specification:

The Built to Specification services include taking a project from conceptualization to mass production quickly and efficiently. The company is also able to better the product lifecycle management by proactively and effectively managing issues such as obsolescence, performance upgrades, market-specific localization and cost reduction.

Industry Analysis

The global electronics industry was estimated at US$ 2.9 trillion in 2020. The Indian government has widely recognised the strategic importance and growth potential of this industry in its National Policy for Electronics (NPE) 2019.

According to the ‘A call to action for broadening and deepening electronics manufacturing’ report by the Ministry of Electronics and IT, India aims to achieve electronics manufacturing worth US$ 300 billion by 2026.

The electronics industry is experiencing several tailwinds that are driving its growth and innovation. The increasing demand for connected devices and the Internet of Things (IoT) is creating opportunities for electronic component manufacturers. The proliferation of smart homes, wearable devices, and industrial IoT applications is fuelling the need for advanced sensors, wireless connectivity solutions, and microcontrollers.

The ongoing digital transformation across industries is generating demand for advanced electronics. Sectors such as healthcare, automotive, and manufacturing are leveraging technologies like robotics, automation, and data analytics, which rely heavily on electronic components and systems.

Moreover, the push for renewable energy and sustainability is driving the adoption of electronic solutions in areas such as solar power, energy storage, and electric vehicles.

The increasing demand for satellite constellations and space exploration missions is driving the need for advanced electronics for communication, navigation, and imaging systems. The development of small satellites and nanosatellites is creating opportunities for miniaturized and high-performance electronic components. Furthermore, the growth of commercial space activities and the emergence of new space startups are fuelling innovation and driving investments in aerospace electronics.


Apparao V Mallavarapu – Chairmen and Managing Director.

Nikhil Mallavarapu - Executive Director

Dr Swarnalatha Mallavarapu - Non-Executive Director

Business Analysis

The company’s operations along the business areas it caters to are explained below:


The Aerospace industry has several ongoing technological initiatives to make aircrafts more fuel-efficient, environmentally friendly and safer, which involves incorporating more electronics on board, making avionics platforms more configurable, and of course factoring in environmental issues and reducing human error to improve safety.

Alongside products for command & control, power electronics and energy storage applications, Centum is also developing activities in ground and flight testing -- using its own test benches and simulators. It also plays a huge role in the global aerospace supply chain delivering critical electronics for cockpit computers, Air Traffic Management.


Space technology is progressing at a rapid pace driven by commercial applications such as satellite broadcasting, communication, Earth observation, geo-location, and global navigation equipment and services. The company is a leading electronics industry partner and one of the largest private contractors of ISRO.

It has delivered mission-critical electronics on almost all satellite programs of ISRO including the ambitious Chandrayaan and Mangalyaan projects, and also delivered 300 to 500 components for almost every Indian space mission.


Recent trends in electronics related to missile building include advancements in guidance, navigation, and control systems. The integration of advanced sensors, including imaging infrared seekers and active electronically scanned array (AESA) radars, enables improved target detection and tracking. Additionally, there is a focus on miniaturization and increased efficiency of electronic components to enhance the performance and range of missiles.  

Centum started its defence business in 2010 and it is today the largest industry vertical for the company. Over the years the company has been successful in developing and manufacturing critical systems for major Defence programs that span across the land, air and naval systems with applications in Missiles, Electronic Warfare, Radar, Military Communications, and fire control amongst others. For the past two decades, the company has been involved in developing and building subsystems for missiles and communication appliances for DRDO Laboratories. It has catered to international OEM manufacturing as well.


Centum is at the forefront of the Transportation sector working very closely with the leading global OEMs and rail operators on developing the next-generation technologies for rolling stock and signalling applications. The company’s products have been deployed in the United States, Europe, Asia and Australia. In addition, Centum provides specialist engineering services and manufacturing services to help clients to meet operational, commercial and regulatory requirements.


The automotive industry is going through a dynamic transformation with new players entering the market introducing disruptive technologies incorporating electronics for applications such as autonomous driving, powertrain architecture and connectivity among others. Centum is involved in R&D and subsystem manufacturing for the Automotive sectors, thereby aiding the transformation in the industry.


Centum has engineered a variety of medical devices and equipment for the Healthcare industry that include digital radiography systems, automated pumps for drug injection, ultrasound equipment, patient monitoring devices and customized room controls for operation theatres among others.

Industrial and energy:

The digital transformation in utilities, infrastructure and manufacturing among other industrial segments is driving new products that are smart, collaborative and result in efficiencies for end-users. Centum enables its customer to realize such products for applications in automation, control and measurement and energy among others.

The company’s expertise in energy conversion and storage technology has helped customers develop customized Microgrid solutions as well as new solutions for railway infrastructure projects.



Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

SEBI Registered Research Analyst - Registration Number: INH300006607

Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.


No comments:

Post a Comment