While we may not realize it, electronic components are a part of our daily life and form the base of multiple industries. The Indian semiconductor industry, in particular, offers high growth potential areas as the industries which source semiconductors as inputs are themselves witnessing high demand. The end-use industries such as mobile devices, telecommunication equipment, information technology, office automation (IT & OA), industrial machinery, automobiles and several other industries have applications for computing in some form or other and thereby necessarily have a growing demand for semiconductors. Now with the concept of the Internet of Things (IoT) picking up momentum, the next generation of interconnected devices would further increase the demand for intelligent computing, thereby creating sustainable demand for semiconductors.
Sensing and catering to this growing sector since 1982 is M/S RamaKrishna Electro Components Pvt. Ltd.(REC). An ISO9001:2015 and D&B Certified company, it registered a turnover of 98 m$ in the last financial year. It also has warehouses in India, Singapore and Hong Kong.
Making a Mark
When the company set its foot in the industry, the official franchise stood out as the company’s biggest competition. After liberalization, the markets became more structured and imports more systematic. The effect was seen in the form of a gradual decrease in obstacles and levelling of competition.
RamaKrishna Electro Components, today, is a leading electronics components distributor providing quality components, design support & supply chain management support to original equipment manufacturers (“OEM”), original design manufacturers (“ODM”) and electronics manufacturing services (“EMS”) in India. The company is a member of India Electronics & Semiconductor Association and has its business model based on OEM, Retail, Kitting, and IDH.
REC works closely with its suppliers to align technical, commercial and supply chain support to customers to become their valuable long term partner in their growth, supported by a team of professional engineers aimed at helping customers to get operational efficiency and cost-effectiveness to their products.
From Humble Beginnings to Leading Lights
Mr. Satish Luthra, the Chairman, started his entrepreneurial journey in a very humble way from a small town of Sonipat. Initially, his work routine involved selling electronic kits purchased from importers, for which he had to travel, to and fro, every day from Sonipat to Lajpat Rai market in Delhi. It took time, but he created a niche for himself and worked on low margins until he became the distributor of leading semiconductor companies in India.
His hard work and quick understanding of things, sharp calculations and strategic mindset put him in the top bracket of regional players who know the art to position and sell. He also had the vision to develop the comradeship in the industry which led him to be a successful businessman of today’s world with $100mill T/O today.
His son Shivang Luthra, the Managing Director of the company, is a young turf who is well-read and groomed. He has similar wisdom and foresight as his father and is the torchbearer of REC now. His dynamic nature has infused new blood, ethos and mindset in REC’s team and he wants to see REC to a new pinnacle in the next 5-6 years.
Handling Growth and Technology
Team REC believes that to fulfill the next demand wave for social, comfort, environment and continuous growth, technology needs to keep changing and companies need to upgrade. In up-gradation of technology, electronics components play a major role in the form of integrated multiple features, small in size, low power consumption, high-reliability demand etc. They believe that REC has a good ecosystem which is in-tune with the latest and most updated technology.
Mr Satish Luthra adds, “We continue to grow and stay in-sync with our suppliers & customers through our application support team in parallel with sales, seminars & exhibitions etc. We are here to do business to inspire and impact all the associated people including employees, suppliers, customers and business associates positively.”
The Path Ahead
According to multiple studies and reports from IESA/ ASSOCHAM/ NOVONOUS etc. semiconductor industry is estimated to grow around at a Compound Annual Growth Rate (CAGR) more than 30 per cent. RamaKrishna Electro Components plans to leverage this growth wave. REC plans to strengthen its base and expand vertically and in parallel.
REC is exploring a new sky of solutions which shall complement its existing strengths, Most importantly in-house R& D is strengthened as technical competence helps to position customized solutions and do the troubleshooting as well
