Vuppalamithra Magnetic Components (VMC) India Limited, a city-based telecom and power products hardware manufacturer, is targeting to cross Rs 1,000 crore in revenues by the financial year ending June 2010, as against Rs 700 crore last year, on the back of its power supplies business.
Announcing the receipt of certification from Canada-based UL (Underwriters Laboratories) for its two indigenously-designed and manufactured desktop and laptop power supply adopters here on Thursday, B Venkat Ramana, executive director of VMC, said the certification would allow the company to foray into the global PC power supply market, which according to a Gartner report is estimated to be $5 billion, growing at 20 per cent year-on-year.
“The global market is currently dominated by Taiwanese, Chinese and US companies as international PC and laptop original equipment manufacturers (OEMs) insist on UL certification. With this certification now to our credit, we will be able to sell these two products to any global computer and notebook manufacturer. We are currently in talks with global majors like IBM, Dell and Hewlett-Packard, and domestic companies including Zenith and HCL, and expect at least four deals to come through in the next six months,” Ramana said.
Stating that the global market for desktops and notebooks is currently pegged at 30 million pieces a year while it is 7.5 million in India, he said the company was looking at exporting its new UL-certified products to countries like Sri Lanka, Bangladesh and Nepal to start with.
“At present, we manufacture 200,000 chargers a month at our five plants in Hyderabad. We intend to scale this up to one million a month over the next one year,” Ramana said, while declining to share the investment that the company proposes to infuse into the expansion.
Ramana said the telecom business contributed 80 per cent to the company’s revenues while the rest was coming from power supplies. “This ratio is expected to be 50:50 in three years' time,” he said, adding the company was examining the option of going in for an initial public offer (IPO) during the 2011 calendar.