MIC Revitalizes its Existing Business Lines, Plans Aggressive Foray into the EV Ecosystem in the Current Fiscal

Hyderabad-headquartered MIC Electronics Limited (MICEL) has announced that it will be revitalizing its existing business lines in the current fiscal, i.e., FY 2022-23, with the objective to comprehensively revive and fortify its ongoing business operations as well as to mark its presence and positioning as a robust and resilient organization in the times to come. Among the key verticals that the company will be thus looking to scale include LED display boards, Railways PIS and displays, etc. Simultaneously, MIC has also planned to enter the EV-enabling space in India in a very aggressive way, in lines with its strategy of growing the business efficiently through diversification.

As a part of its strategic upcoming focus on the EV-enablement segment in India, MICEL has now decided to actively venture into the manufacturing of all kinds of EV batteries, including Li-ion batteries. With its newly-established batteries division, MIC Electronics plans to ensure a topline delivery of INR 45-60 Crores by end FY 23. Furthermore, MIC is already in final-stage talks with a few existing players in the Indian market to expand into areas like EV charging and servicing, among other allied areas in the nation's burgeoning EV ecosystem. The company has already picked up stake in an e-2W company that deals into the multi-brand EV dealership business.

Speaking of the company's recent foray into the EV space and future plans, Mr. Kaushik Yalamanchili, Managing Director, MIC Electronics Limited said, "The e-mobility ecosystem in India is growing at an unprecedented pace, and hence the need has exponentially grown off late for large-scale EV-tech enablement and cutting-edge tech solutions and supporting infrastructure development on this front. As a pioneering company in the electronics segment in India, it came to be a natural extension for us to expand into the EV-enablement domain - as we at MICEL already have the know-how and expertise in most of the intersectional areas of electric and electronic systems. We are foreseeing massive scope and potential in the EV-enablement front. And keeping the same in mind, are partnering with various technical collaborators across the country to form tie-ups and alliances that will serve to bolster the ecosystem at large in the years to come; starting from electric 2Ws initially and then moving across other types of EV platforms. MIC's long-term goal and vision is to become the leading and biggest player in the EV-enabling sector in India."

"Going forward, as MIC continues to explore opportunities for growth, both organically and inorganically, in the EV-enabling ecosystem, we will also in parallel strengthen our successfullyestablished business lines. For instance, we look forward to increasing the number of Railway stations for our Annual Maintenance Contracts (AMCs) with IRCTC from 38 to 68 by the end of the current fiscal. We will also be developing a web and mobile application to display train indication display boards of various stations on web and mobile. Furthermore, we are in the process of identifying our non-operational and/or superfluous assets which can be monetized and the funds raised therefrom will be deployed in further strengthening the finances of the company and utilized for growing the existing business and investing into MIC's newer avenues and directions planned," adds Mr. Kaushik Yalamanchili.

Notably, MIC Electronics was taken over by a new management team back in June 2021, following which the company got a large order from ONGC for supplying 5000 oxygen concentrators under the PM-Kisan scheme of the Government of India. They have successfully executed the order within the delivery with oxygen purity level of more than 98 percent alongside ensuring zero complaints from the customers, thanks to strong quality team and strict compliances done as per ONGC's requirements.

Over the years, MIC has built its legacy majorly in the LED products domain, both in LED displays and lighting solutions. The company has been supplying its LED Display Boards primarily to the Indian Railways, alongside offering software support and maintenance. Further, its legacy is enabling MIC to now receive multiple enquiries for the supply of Display Boards from Tirupati-Tirumala Devastan, Indian Naval Academy - Cochin and from some of the major railway stations in Eastern and Southern zones of Indian Railways. MIC's new direction planned is to now expand and diversify its business and take forward-looking steps towards becoming India's largest EV enabler within the next 5 years, as the company strongly believe that the future era of transportation and mobility will be ruled by EVs, which in turn shall pave a cleaner and greener world.

Source : Equity Bulls

Keywords

MICElectronics FY2023 RevitalizingBusiness