Concord Control Systems Limited has announced a strategic move into the high-value electronic manufacturing services (EMS) sector with the acquisition of a 50% stake in Fusion Electronics Private Limited. This acquisition marks Concord's entry into the niche market of flexible printed circuit board (PCB) production, positioning the company for significant growth in the electronics manufacturing industry.

Key Highlights of the Acquisition

• Stake Acquired: 50% equity stake in Fusion Electronics Pvt. Ltd.
• Transaction Details: Cash consideration, to be completed within six months
• Strategic Importance: Entry into flex PCB manufacturing and high-value EMS sector
• Target Company Profile: Largest flex PCB manufacturing unit in India with over 31 years of experience

Fusion Electronics: A Strategic Asset

Fusion Electronics brings a wealth of experience and capabilities to Concord Control Systems:

• Manufacturing Capacity: 200,000 square meters annually
• Revenue Potential: Approximately ₹200 crore+ at full capacity
• EBITDA Margin Potential: Over 20%
• Expertise: Flex roll-to-roll, rigid panel, and flex panel processing

Strategic Rationale and Future Outlook

The acquisition aligns with Concord's vision to enter sunrise electronic manufacturing services and create a high-value EMS platform serving strategic sectors. Key points include:

• Leveraging Concord's engineering precision and manufacturing excellence
• Focus on high-margin, import-substitution products
• Deepening partnerships within the railway industry
• Plans for capacity expansion and forward integration

Roadmap for Growth

Concord has outlined an ambitious plan for Fusion Electronics:

• Short-term Goal: Commercialization of the Lucknow facility before the end of the fiscal year
• 3-Year Vision:
  • Double the current capacity
  • Forward integration into SMT, box build, and railway electronics
  • Establish a standalone, high-value EMS platform for strategic sectors

Management Changes

As part of the acquisition:

• Mr. Sameer Mehan has resigned from the directorship of Fusion Electronics
• New directors appointed: Mr. Gaurav Lath, Mr. Nitin Jain, Mrs. Pankhuri Lath, and Mrs. Mahima Jain

Market Implications

This strategic acquisition positions Concord Control Systems to capitalize on the growing demand for flexible PCBs and high-value electronic manufacturing services in India. The move is expected to strengthen Concord's position in the railway ecosystem while opening up new avenues for growth in automotive and industrial electronics sectors.

The transaction underscores Concord's commitment to innovation, self-reliance, and growth in India's electronic manufacturing landscape. Investors and industry observers will be watching closely to see how this acquisition unfolds and impacts Concord's financial performance in the coming quarters.

Concord Control Systems Limited has announced a significant milestone for its associate company, Progota India Pvt. Ltd. The Research Designs and Standards Organisation (RDSO) has granted technical prototype approval for Kavach 4.0, an advanced iteration of Indian Railways' indigenous Automatic Train Protection (ATP) system.

Key Highlights

• Progota India Pvt. Ltd. receives RDSO technical prototype clearance for Kavach 4.0
• Approval enables execution of trial order from South Central Railway
• Progota recognized as a Developmental Vendor for upcoming Kavach 4.0 tenders
• Company identifies ₹1,000 crore revenue potential and ₹1,800 crore market value

Implications of the Approval

The RDSO's endorsement marks a crucial step forward for Progota India, validating the company's engineering prowess and adherence to stringent railway safety standards. This approval positions Progota to participate in the nationwide rollout of Kavach 4.0, joining an elite group of vendors qualified for this critical railway safety initiative.

Kavach 4.0: Enhancing Railway Safety

Kavach 4.0 represents a significant upgrade to India's rail safety framework. The system is designed to:

• Prevent train collisions
• Improve operational reliability
• Facilitate seamless communication between locomotives and trackside infrastructure

Financial Outlook

The company has identified substantial financial opportunities associated with this development:

Management Commentary

Mr. Nitin Jain, Joint Managing Director of Concord Control Systems Limited, expressed pride in this achievement, stating, "Receiving the RDSO prototype clearance for Kavach 4.0 is a proud milestone for our team. This significant approval marks our commitment to the Government of India's vision of 'Atmanirbhar Bharat' by delivering advanced, indigenous technology solutions that enhance safety and efficiency on India's railway network."

Future Prospects

With this approval, Progota India Pvt. Ltd. is well-positioned to contribute significantly to the modernization of India's railway infrastructure. The company's focus on innovation and strategic partnerships aligns with the government's initiatives for railway safety and efficiency improvements.

As Concord Control Systems and its associate Progota India continue to advance in railway technology, they are not only strengthening India's rail safety ecosystem but also potentially opening doors to global markets in the future.