INTRENSHIP STUDY AT KAYNES TECHNOLOGY INDIA LTD, MYSORE

Chapter 1
INTRODUCTION

1.1 Introduction about EMS Industry:

The term “Electronic manufacturing services” (EMS) refers to an overall industry and also to a
specific class of subcontractor or company. EMS is also often used interchangeably with the more
generic term “contract manufacturing (CM). In short, EMS companies provide a wide range of
value-added engineering and manufacturing outsourcing services to original equipment
manufacturers (OEMs), allowing them to improve operational efficiencies and focus on core
activities like research and development (R&D).
The electronics manufacturing services (EMS)market is dynamic, and the demand for electronic
components and outsourced manufacturing services is growing.
The industry is forecast to grow at a compound annual growth rate of 7.5% between 2018 and
2024, according to market research.
Growing demand for consumer electronics and in innovative technological advancements allows
manufacturers to capitalize on current opportunities, with rising customer demands and the need
to control costs, manufacturers may need to partner with solution providers that offer industry
expertise and in the experience.
As a global leader in high mix low-volume manufacturing, we can see first-hand the evolution the
EMS industry is experiencing and the critical role we play in the electronics value chain. Electronic
manufacturing services (EMS) are provided by companies that design, assemble, produce, and test
electronic components and printed circuit board (PCB) assemblies for original equipment
manufacturers (OEMs).
EMS companies may provide a variety of manufacturing services, including design, assembly,
and testing. EMS companies may be contracted at various points in the manufacturing process.
Some companies require only a design file from the customer before proceeding to develop the
product, source the components from a trusted distributor, and assemble and test the products,
Alternatively, EMS providers who specialize in assembly may require the customer to provide the
design, the components necessary for manufacturing, and an assembled sample. EMS companies
may provide additional onsite services through another contractor.
Electronic manufacturing involves different levels of automation, depending on the company and
project. Companies that produce large runs of products typically use heavily automated
manufacturing. Providers who specialize in prototypes or small production runs typically assemble
PCBs manually to save the time and cost involved in setting up automated assembly equipment.

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1.2 Design and Testing Services:

Design
Design services encompass several related actions that occur after determining a customer’s
specification or product need and before manufacturing or assembly takes place. The EMS
company may first provide a product concept detailing the main objectives of the project and
preliminary specification. The company may do research by interviewing products users,
consulting experts, and exploring existing related products. After these two steps occur, the product
is then developed, visualized, and tested, and a prototype is sent to the customer for approval.
Testing
EMS companies may provide one or more types of product testing after completing a prototype
or product run.
• Agency compliance testing ensures that the product meets the safety and quality guidelines of a
certain agency’s standards.
• Analytical laboratory testing assists in quality control, failure investigation, and research and
development.
• Automated optical inspection uses a computer to analyze a PCB to locate defects, including
broken traces, excess solder, etching problems, or improper hole registration.
• Environmental testing simulates a product’s intended environment. Environment tests may vary
the environment’s temperature, humidity, and vibration to test the product’s resistance.
• Functional testing simulates the assembly’s normal function to test its overall operational
characteristics.
• X-ray testing uses non-destructive imaging techniques to provide a thorough analysis of an
assembly.

1.3 Manufacturing and production capabilities:

Electronic manufacturing companies may specialize in one or more areas of manufacturing
encompasses several different types of electronic products.

Manufacturing
Electronics manufacturing encompasses several different types of electronic products.

Printed circuit boards

printed circuit boards, or PCBs, are flat boards that hold electronic components. EMS provides
populate PCBs with components to create printed circuit assemblies (PCAs), and may have the
capability to work several different types of boards.

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PCBs are assumed to be rigid and manufactured as a hard, inflexible board. Flexible PCBs can
bend and accommodate flexible circuits used in instrumentation, automotive, and medical
applications. Rigid- flexible PCBs are rigid boards with flexible interconnects.

EMS companies may also specialize in one of two types of PCB technology: Through hole (TH)
and surface mount (SMT)

• Through hole Technology (TH) involves mounting components by inserting their leads through
holes drilled in the board. The leads are then soldered into place on the opposite side of the board,
THT components are typically hand-soldered or wave soldered to a PCB in a production line.

• Surface Mount Technology (SMT) components are soldered to the top of the board, and are
usually smaller and less expensive than THT components. From a manufacturing standpoint,
modern pick and place equipment can mount SMT components quickly and accurately.

Prototyping

Some provides build prototyping, which are early samples made to test a product’s concept,
following the design phase. Prototyping ensures that the products will serve its intended purpose
after it is manufactured as part of a larger production run. Prototyping is often built with cheaper
materials than those used in the production process. In the past, electronics manufacturing
produced prototyping using breadboards and THT components, but the widespread availability of
custom prototype PCBs now allows manufacturers to produce prototypes that closely mirror the
intended product. Prototyping may occur multiple times at various points in the design and
planning stages of a project.

Volume

EMS companies often specify their production volume capabilities. Although production volume
statistics are relative, general guidelines can be specified.

• Low volume provides produced small quantities, typically 1 to 100 products. Low
volume is often similar to or synonymous with prototyping.

• Medium volume providers are able to produce around 100 to 10000 products annually.

• High volume providers can produce more than 10000 units annually.

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ELECTRONIC INDUSTRY

Figure 1.1. showing Electronic Industry manufacturing.

Figure 1.2 Showing Electronic circuit boards.

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Assess of market share, Strength, weakness and Strategy of EMS industry:

Assess of market share:
The global electronic manufacturing services (EMS) market size was valued at USD 503.91 billion
in 2022. The market is projected to grow from USD 534.62 billion in 2023 to USD 856.20 billon
by 2030, exhibiting a compound annual growth rate (CAGR) of 7.0% during the forecast period.
The demand for electronic manufacturing services is estimated to grow due to rising product
adoption across healthcare, automotive, and industrial application. Additionally, service providers
heavily focus on providing functionalities such as sub-assembly manufacturing, testing, designing
printed circuit boards (PCBs), and component assembly and re-engineering. These factors are
expected to drive the market growth over the forecast period.
Besides, electronics manufacturing service companies invest heavily in increasing industrial
output and implementing new technologies, contributing to establishing new worldwide standards.
Organization in this industry have adopted several technological transformations such as virtual
reality, the internet of things (IOT), and 3D printing, to expand their production capability. To
obtain high-value components and mass customization, market participants are now creating
partnerships with a variety of original equipment manufacturing (OEMs), original design
manufacturing (ODMs), and other partners.
Entry barriers in the EMS industry:
• Capital investment cycle: one of the issues which face the entire industry – especially
component manufacturing and the EMS companies – is that of long capital investment
cycles. It takes a long time, as compared to other manufacturing industries, to realize an
invested capital. This also acts as a barrier to entry for a newer player and the capital-
intensive nature of the industry makes it hard for the smaller players to achieve scale.
• Presence of established players: furthermore, the players are increasingly investing in
R&D and exhibiting mergers, acquisitions, and partnerships as key growth strategies to
gain a competitive advantage. The strong presence of established players in the
marketplace poses high entry barriers for new players entering the consumer electronic
market.
• Uncertain demand: uncertain demand for products closely affects the EMS providers.
Companies may have to deal with volatile economy and various demand which leads to
fluctuations in production. Consumers in today’s day and age very clear about their
requirements, which sometimes leads to spike in demand for a certain product. A company
is expected to be resources.

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• Long approval cycles: there are challenges in the acquisition process, especially in the
aerospace and defence segments. From the ‘statement of case’ for a major aircraft deal to
‘acceptance of necessity’ can take up a long time. Also, request for information and request
for proposals and the selection and negotiation process takes three to four years, and the
production or delivery takes another two to three years.
• Need for certification and technical know-how: attaining and maintaining technical
knowledge through continued training, and development, are essential elements in
regulated industries such as A&D, medical, telecom and others. With high barriers to entry
in these sectors (such as high capital costs for inventory, the need for specific certification
and the need to be close to the customer) it is unlikely that any new competitors will enter
the market any time soon.
Strength of EMS:
• Technological advancements and acceptance of smart home devices: The
development of new manufacturing technologies and the emerging end-use sectors, such
as the Internet of Things, are expected to boost demand for the EMS industry. Major
manufacturers are strengthening their R&D investment in order to differentiate their
products and attract new end-use applications. The rising popularity of smart home devices
in developed nations such as the United States and European countries raises very high
expectations for EMS companies.
• Greater emphasis on vehicle electrification: The Electric Vehicles market will be the
most lucrative in the automotive industry over the next decade. With an ever-increasing
electronic content in each car, energy related modules, and sub-assemblies, as well as
charging infrastructure, which requires an overall ecosystem; it is a paving out major
potential for EMS firms to enter this fast developing industry and serve the leading EV
manufacturers. Technological upgrade of facilities: Most of the large manufacturing
companies are investing heavily in the technological up-gradation of their facilities by
adopting digitization and industry 4.0 concepts. This will increase demand for Industrial
electronics products which in turn will boost the EMS industry.
• Product development activities: The dependence created by electronics in product
development activities across all verticals will turn out to be a significant driver for EMS,
especially in consumer electronics and automotive segments, where new devices and
systems are being developed. As the electronic content increases, the volume of
manufacturing will increase, driving the market.
• Accelerated demand post-COVID-19: has currently increased the requirement for EMS
services. This will subdue in the mid to long-term once inventory is created. Also, major
medical device manufacturers are very keen to design & manufacture smaller and smarter
medical devices that

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integrate new technologies like IoT and other electronics-embedded features. Furthermore,
the growing demand for the wearable and the smart medical devices is pushing the need
for smaller, flexible, and light-weight products in the healthcare business.
• Digital thread and Smart factory to drive efficiencies: Going forward it is anticipated
that A&D companies will accept digital thread and smart factories in 2023. Digital threads
are considered very useful as it helps connect the life cycle of A&D products from the
initial design of the product until the final stages. This helps in collecting dynamic feedback
as we go along the process. This will effectively help in reducing the overall time to market,
service costs and help in quickly adapting to the changing needs of customers
• Electrification, an emerging trend in Aerospace segment: Top aerospace companies
as well as new entrants are investing in research and development centered around
electrical propulsion, generation, distribution, storage, and conversion. Electrification
means the migration of both the aircraft and propulsion systems to one which is powered
by electricity instead of pneumatics, hydraulics, and jet fuel. While the industry awaits the
magic battery, hybrid aircraft will be required to drive the electric propulsion technology
forward. Many companies are investing in ushering in such advancements.
Weakness of EMS Industry:
• Fragmented market: Due to its strong growth potential, many companies are entering
the industry which is causing stiff competition in the market. The existence of a high
number of market participants in all areas results in competitive pricing, which reduces
market revenue potential. This is mainly applicable for HVLM products. However,
specialized sectors such as A&D and medical, are highly complex, and expensive, there
are obvious challenges and barriers that make it almost impossible for new players to enter
this market. High capital requirement and strict regulations are the key barriers preventing
companies from entering these sectors.
• Shrinking operating margin: A majority of the market participants face challenges with
respect to the operating margin. In the EMS industry, profit margins are relatively low. As
component prices are on an average, key focus lies on the labour costs. A low operating
margin is viewed as an impediment to growth, considering the impact it can create on
expansion plans. Currently, this is viewed as a significant restraining factor for the market.
However, in the long term, as overall demand increases, market participants will be able to
expand through technological investments. Thus, the impact will lower in the mid to long
terms.
• Shortened product lifecycles and uncertain demand: Customer preferences and
interests continue to evolve at a breakneck pace. To launch the items on schedule while
fulfilling quality and

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volume objectives, a collaborative effort across difference sections is required. The

industrial sector should be able to handle the rise in demand if it reaches exceptional
heights. If demand falls, companies must have a strategy in place for the idle raw materials
or machinery.
• Regulations and violations of IP: Local stringent laws and trade pricing are having an
influence on the EMS sector, driving OEMs to build in-house manufacturing capabilities.
In addition, an increasing number of cases on infringement of intellectual property rights
are posing a serious threat to EMS companies.
• Complex structure and delay in supply chain: Supply chain delays causing shortage
of components are likely to impact the revenue in the short term. Russia-Ukraine conflict
has impacted supply chains in the semiconductor industry. The conflict may have particular
impact on the supply of Neon and Hexafluoro butadiene gases, which are an essential
element to manufacture semiconductor chips as these are used in the lithography processes
for chip production. However, the overall, the impact of transformation is very low in the
mid and long terms.
• Skilled labour shortage: There is substantial competition for R&D personnel, qualified
technical experts, sales and marketing professionals, and post-sales services providers, as
well as a rising attrition rate in the EMS industry.
• Sustainability: Emerging regulations and requirements are forcing organizations to
account more and more for Corporate Social Responsibility (CSR) in decisions. E-Waste,
a famous subject today, is driving conversations about the disposal of merchandise and
there has an effect on the environment. Companies must now reflect on consideration on
of the whole product lifecycle in decisions.
Strategy of EMS:
The Electronic Manufacturing Services (EMS) industry operates in a dynamic and
competitive environment, offering a range of services from design to manufacturing,
testing, and distribution of electronic components and devices for various sectors. The
strategies employed by EMS companies are multifaceted and adapt to changing market
dynamics, technological advancements, and evolving customer demands.
Customer-Centric Approach:
• Understanding and meeting the unique needs of customers is paramount. EMS providers
often tailor their services to cater to specific industries or client requirements.
• Offering flexibility in production volumes, customization options, and rapid prototyping
capabilities to accommodate diverse customer needs and product lifecycles.

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1.Technological Innovation and Adaptation:

• Staying at the forefront of technological advancements is crucial. EMS companies invest
in research and development to integrate new technologies, such as IoT, AI, robotics, and
automation, into their manufacturing processes.
• Embracing Industry 4.0 principles by implementing smart manufacturing, data analytics,
and predictive maintenance to enhance operational efficiency and quality control.
2.Global Expansion and Diversification:
• Expanding operations globally to leverage cost advantages, access diverse talent pools,
and serve different regional markets efficiently.
• Diversifying service offerings to cater to various industries like consumer electronics,
automotive, healthcare, aerospace, and industrial equipment, reducing dependency on
specific sectors.
3.Strategic Partnerships and Collaborations:
• Collaborating with OEMs, suppliers, technology partners, and academia to foster
innovation, access specialized expertise, and secure a robust supply chain.
• Forming strategic alliances or joint ventures to enter new markets, share risks, and
capitalize on complementary strengths.
4.Supply Chain Optimization and Risk Management:
• Ensuring a resilient and efficient supply chain by proactively managing risks associated
with component shortages, geopolitical tensions, and disruptions.
• Implementing agile supply chain practices, inventory management systems, and alternate
sourcing strategies to mitigate risks and maintain production continuity.
5.Focus on Sustainability and Compliance:
• Emphasizing environmentally sustainable manufacturing practices, reducing waste, and
adhering to stringent regulations related to electronic waste disposal and responsible
sourcing of materials.
• Incorporating green initiatives, energy-efficient manufacturing processes, and eco-
friendly materials to meet evolving environmental standards.
6.Operational Excellence and Cost Efficiency:
• Continuous improvement in operational processes, lean manufacturing methodologies,
and cost effective production techniques to optimize efficiency and reduce manufacturing
costs.

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• Implementing quality management systems, Six Sigma practices, and fostering a culture
of continuous improvement to enhance product quality and reliability.
7.Customer Relationship Management and Service After Sales:
• Providing excellent customer service throughout the product lifecycle, including after-
sales support, warranty services, and repair solutions, to build long-term relationships and
enhance customer loyalty.
• Collecting feedback, analyzing performance metrics, and incorporating customer
suggestions to drive product innovation and service enhancements.
8.Talent Development and Employee Engagement:
• Investing in employee training, skills development, and talent retention strategies to
ensure a skilled workforce capable of adapting to evolving technological advancements
and market demands.
• Fostering a culture of innovation, creativity, and collaboration among employees to
encourage idea generation and problem-solving.
These strategies form the foundation for EMS companies to navigate the complexities of
the industry, drive growth, maintain competitiveness, and adapt to the ever-changing
landscape of the electronic manufacturing sector. The successful implementation of these
strategies enables EMS providers to meet the diverse demands of customers, deliver high-
quality products, and sustain profitability in a highly competitive market.

Current market size of EMS:

The Electronic Manufacturing Services (EMS) industry plays a crucial role in the global
electronics supply chain. It encompasses a wide range of services, including design,
manufacturing, testing, distribution, and repair of electronic components and equipment
for various industries like consumer electronics, automotive, aerospace, healthcare, and
more. As of my last knowledge update in January 2022, the EMS industry was experiencing
steady growth, driven by technological advancements, increasing demand for electronics,
outsourcing trends, and a shift toward more complex and specialized electronic products.
Estimating the current market size of the EMS industry involves considering various
factors, market segments, and geographical regions. The EMS market is influenced by the
demand for electronics across sectors, including smartphones, tablets, wearables, IoT
devices, automotive electronics, medical devices, and industrial equipment.

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In recent years, the global EMS market size was estimated to be in the range of hundreds of billions
of dollars annually. However, precise figures can vary due to differences in market research
reports, methodologies, and ongoing developments. Factors influencing the industry's growth and
market size include:
Demand for Electronics: The increasing adoption of electronic devices in both developed and
developing countries fuels the EMS industry's growth. This demand is driven by technological
advancements, rising consumer disposable income, and the need for more sophisticated and
efficient electronic products.
Outsourcing Trends: Many original equipment manufacturers (OEMs) outsource their
manufacturing processes to EMS providers to focus on core competencies, reduce costs, access
specialized expertise, and improve time-to-market for their products.
Technological Advancements: The rapid pace of technological innovation drives the need for
EMS companies to stay updated with the latest manufacturing processes, materials, and
components, such as IoT integration, miniaturization, advanced materials, and sustainable
manufacturing practices.
Geographical Expansion: The EMS industry is spread across various regions worldwide, with
significant manufacturing hubs in Asia-Pacific (including China, Taiwan, and South Korea), North
America, Europe, and emerging markets in Latin America and Africa.
Industry Diversification: EMS companies serve a wide array of industries, from consumer
electronics to automotive and healthcare. The diversification into various sectors adds resilience
and opportunities for growth within the industry.
Supply Chain Disruptions and Challenges: The EMS industry, like many others, faces challenges
related to supply chain disruptions, component shortages, geopolitical tensions, and changing trade
policies, impacting manufacturing operations and market dynamics.
Sustainability and Regulations: Increasing emphasis on sustainability, environmental regulations,
and responsible manufacturing practices also influence the EMS industry, impacting production
processes, material sourcing, and waste management.
Forecasting the exact market size at present would require access to the latest market research
reports, industry analyses, and real-time data, which might have changed since my last update.
Analysts and market research firms continually monitor and project the EMS industry's growth
trajectory based on emerging trends, economic conditions, technological advancements, and global
market demands.

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Chapter 2

COMPANY PROFILE

2.1 Introduction About Kaynes Technology India ltd:

Kaynes Technology India Ltd, Mysore, India is a leading domestic player in the Electronics
System & Design Manufacturing Services Space with Global foot print. Apart from its mother
plant and additional manufacturing facility at Mysore it has 10 manufacturing plants at Mysore
(HO)-Domestic Parwanoo, Himachal Pradesh, Selaqui, Dehradun, Bangalore, Peenya,
Chennai facility -Domestic & export, Mysore new facility- Domestic, Manesar near Delhi,
Domestic, Bangalore Peenya - Plastic and moulding and new facility planned in sanand, Gujrat
by 2024 & Chamarajanagar, Karnataka.

Kaynes also has State of the Art Design and Development Centre (Kaynes Embedded Systems)
at Bangalore for Embedded Design and Engineering services to support customers from
Concept to Manufacturing

Customers looking for Pre and Post warranty Component level Hardware Repair, Design
Development, re-engineering and obsolescence management Services and Support. Kaynes
has Electronic repair. Design and Re -Engineering Centers at Mumbai. In addition to Mumbai,
Kaynes has Centers at Bangalore, Delhi as well as at Cochin for Support Services.

Apart from products required for various industry segments Kaynes undertakes conceptual
design, manufacture and testing of high reliability PCBAs, Box Build, Products and Systems
Integration Services, Military Wire/Cable Hamess for Defense and Aerospace Electronics and
all other segments of Industry.

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2.2 Kaynes Company Milestones or History:

• 1988-1990
Established in 1988 as an EMS company operating on a consignment model,
Commenced operations in a small rented facility without any SMT line.
• 1991-1999
Moved to a new 5000 sq. ft facility in 1991 with an employee count of 36,
Obtained ISO 9000 certification in 1995,
Strengthened presence in domestic market.
• 2000-2003
Grew to 80 people Added a new SMT line and forayed into turnkey manufacturing,
Started exports in 2001 and acquires first export client Analog Devices.
• 2004
Established 2nd manufacturing unit at Parwanoo, HP
Commenced exports to Europe and South East Asia, established full- fledged manufacturing line
with SMT and TH assembly and upgraded facility at Mysore plant.
• 2006-2007 Obtained ISO 14001 and OHSAS 18001 certification from BVQI,
Opened 3rd facility in Selaqui, Uttarakhand as an exclusive facility for Electro-Mechanical unit
Integration, started catering to the defence sector through BEL.
• 2008
Started the CRM Arm in Europe Kaynes Technology Europe GmbH,
Opened new facility in Bangalore for unit integration & cable harness,
Obtained ISO/TS 16949 certification for Mysore facility,
Upgraded SMT line in Mysore facility,
Created Strategic Electronics division for developing Defence and Aerospace verticals,
Granted the status of "most preferred vendor" for BEL through an MoU.
• 2009
Expanded the certifications portfolio through specific certifications-IRIS, AS 9100 and ISO
13485,

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Opened new Unit at Chennai catering to relays and coils,

Started exports to Australia and Malaysia.
• 2010
Established second manufacturing facility at Mysore,
Acquired major new customers in EU countries,
Reached over INR 100 Cr turnover with 500 employees.
• 2011-2013
Opened unit in Manesar Established a service facility at Navi Mumbai
Crossed a turnover of INR 200 Cr with-750 employees
Naval Shipyard Servicing added from Cochin Facility
• 2013-2017
Started BLE Module Manufacturing NADCAP Certification Best MSME Award
Strategic Partnership with Customers in Defence & Aerospace including ISRO
Focus on Automotive Electronics
Kaynes Interconnect established for Cable Harness
• 2018-2020
Capacity Enhancement at Mysore and Manesar plants with new facility & Infrastructure
Kaynes International Design & manufacturing (KIDM) incorporated for exclusive product lines
of
EU Client
Kaynes Inc USA incorporated Separate Medical Manufacturing Facility opened Class 10K Clean
room for Optics Make in India Award, Best EMS Award, New Plant in Gujarat.

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2.3 Nature of business:

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics

manufacturer in India. We have capabilities across the entire spectrum of ESDM services.

Kaynes has over three decades of experience in providing Conceptual Design, Process
Engineering, Integrated Manufacturing and Life Cycle Support for major players in the
Automotive, Industrial, Aerospace and Defense, Outer-space, Nuclear, Medical, Railways, Internet
of Things (“IoT”), Information Technology (“IT”) and other segments.

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2.4 Vision, Mission, Objectives, and Quality Policy of Kaynes Technology

India Ltd:

Vision:

Figure 2.4 vision

MISSION:
Kaynes is committed to provide best-in-class electronics manufacturing services, to customer
globally, in the areas of mobility, industrial, health care. defense and communication through
highly skilled and innovative people by adapting contemporary technologies and processes, thus
creating a healthy environment and performance culture to delight all Interested parties.

Objectives:
• To consistently uphold fundamental integrity and discipline at all levels.
• To respect one's own abilities and knowledge, regardless of one's status.
• To regard positive feedback from consumer

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Quality and EHS Policy:

We at Kaynes Technology shall make the business process environment friendly,
safe and oriented by
Establishing documenting and communicating, implementing and maintaining.
continuously improving business and quality of management process, including: environment,
occupation, health and safety of management processes across the country.

And Manufacturing and supplying of products and services that satisfies customer,
quality, Statutory, regulatory and safety requirements throughout the product life cycle, consistent
with the expectation of all the interested parties.

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 Kaynes Processes:
 Customer relationship management
 New product development management
 Supply chain management
 Inventory management
 Production management
 Quality Assurance management
 Asset Management
 Human resource management
 Operations management
 Environment, Health, Safety
 Finance accounts Management

 Business Verticles of Kaynes:

 Defence &Avionics
 IT peripherals
 Tele Communications
 Industrial control/ Automation
 Instumentation
 Medical Electronics
 Railway signaling
 Automotive Industry
 Power and Energy

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2.5 WORKFLOW MODEL

Testing FCI TTTup

Touch

OQC Packing

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DEPARTMENT INTRODUCTION

In this chapter all department processes carried out in the organization has been discussed
and all the processes explained in step-by-step order.

1. Warehouse Management Department

This department majorly involves five step processes
 Process 1:- Inward Inspection
 Process 2:- Storage and Protection
 Process 3:- Retrieval and Issues
 Process 4:- Inventory Verification and Control
 Process 5:- Control of CSP and SSP

PROCESS 1:- Inward Inspection

These process starts at the gate, once the goods received at the gate they under go physical
inspection like packing, quality, rate etc. All these parameters of the received product should be
matched with the “TAX INVOICE” provided by supplier after this inspection the security will
receive the goods by placing gate received sticker which contains time and date of receive and also
signature of received person on each box of material.

PROCESS 2:- Storage and protection

Once the inward inspection is completed the goods will undergo GRN that is “Goods
Received Note” where the GRN id is generated for every material and safely store and organize
material so that it may be picked quickly and accurately. After GRN is done then the material
Undergo IQC (Inward quality check).

PROCESS 3:- Reterival and Issues

In this processes the reterival and issuing of the material takes place. for this processes the
project manager provide the work order number for each product from which pick list will be

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generated in stores, which usually contains item code , description of material, UOM, batch etc.,
by using picklist the materials will undergo kitting next it will issue for production. They
maintained accepted sticker with colour code for each month in order to maintain the FIFO (first
in first out ) Policy.

PROCESSES 4:- Inventory verification and Control

At this processes the physical stack and ERP stack (Enter price resource planning
Stack) is verified on daily basis to ensure that FIFO is following, if any material is lossed in
handling or there is a mismatch in quantity of the material they have to give MRN (Material
Requisition Note) to resupply the Components.

PROCESSES 5:- Control of CSP and SSP

In this processes they will check for CSP (customer supply property) and SSP
(supplied supply property).

Traceability Sticker in stores

 January – yellow
 February – green
 March - magnet
 April – orange
 May – Brown
 June – Blue
 July – Purple
 August – Aqua blue
 September – Violet
 October – Grey
 November – Olive Green
 December – Apricot

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2. SMT (Surface Mount Technology) Department

SMT Process

 Baking
 Loader
 Screen printer
 Pick and place
 Reflow
 AOI

BAKING
It is the first process involved in SMT

It is to check the PCB is good for the further process

PCB baking is done when it contains moisture content

It is done when PCB manufacturing date expired

 Single layer PCBs are backed at 120c for 2 hours

 Double layer PCBs are backed at 120c for 2 hours

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 Multi-layer PCBs are backed at 130c for 3 hours

LOADER
In this stage PCBs are loaded into the magazine rack

Loading stage occurs after baking is done

 Documents referred
 Process flow chart
 Control plan

 Equipment’s and tools used

 Loader
 Unloader

SCREEN PRINTER

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In screen printer solder paste is applied on bare PCB’s (Two types of pastes used are Rohs and
NonRohs)
 Documents referred
 Equipment supplier’s manual
 Process flow chart
 Control plan

 Equipment’s and tools used

 Screen printer machine
 Stencil
 Squeegee blade

PICK AND PLACE

In pick and place small SMD components are picked and placed with the help of nozzles
 Documents referred
 Process flow chart

 Equipment’s and tools used

 Pick and place machine
 Feeder
 Smart tweezer

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 ESD bins

REFLOW
There are four stages in reflow process
 Preheating: The PCBs are slowly heated (If heat is supplied suddenly it will cause damage
to the PCB’s)
 Soaking: In soaking stage the heat will be spread throughout the card
 Soldering: This stage happens when the card reaches 250c – 300c
 Cooling: In this stage the temperature of PCB’s are brought down

There are 10 zones in Reflow process

 8 heating zones and 2 cooling zones

AOI (Automated optical inspection)

In AOI process they will inspect whether the PCBs are defect free or not
It is to eliminate internal and external complaints
It is inspected by passing Lazer beams to the PCB’S

3. THROUGH HOLE DEPARTMENT :-

Through hole process

 Kitting
 Forming

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 Hardware Fixing
 Masking
 Stuffing
 LQC
 Wave Soldering

KITTING
Once the project manager gives the work order the planning team will check it to move it to
the stores and the pick list will be generated by that kitting of the material as per the project
takes place and it will issue for production.

FORMING
The process of cutting and bending or only cutting of through hole components is called
forming.
There are two types of forming
 Axial Forming – In this forming bending and cutting of leads is done.
Eg : Diodes, Resistors
 Radial Forming – In this forming only cutting of the lead is done.
Eg: Capacitors, Inductors

HARDWARE FIXING
Hardware fixing is the process of fixing the heat sink with IC with the help of screws and
adhesives

MASKING
It is the process of covering the ICs from high temperature at the time of wave soldering. There
are different type of masks used for masking

 Paper (White)
 Kapton (Gold) – Rubber
 Rayon (Pink) – Cloth

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STUFFING

It is a process of mounting the PTH components to PCB board

Types
 Line assembly: which board is moving and person are stationary.
 Mass assembly: person are moving and boards are stationary.

LQC (Line quality check)

In line quality check
Wrong value
Reverse mount
Value erase
Component missing
Component damage’s are checked LQC
Only the first 5 cards will be send for jig inspection

WAVE SOLDERING

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There are 3 zones in wave soldering Low, Medium and and High (240 degree)
In this high temperature zone wave soldering happens.
Flex is the substance used for soldering
There are three types of flux
 Rosin
 No clean
 Cobal

4. CLEARANCE

Flow chart of clearence process

 Touch up
 Mounting
 Hand soldering
 FCI – (Final component inspection)

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 Lead cutting
 Demasking
 FSI – (Final soldering inspection)
 Gluing (its give the mechanical strength )
 Cleaning

 FCI – FINAL COMPONENT INSPECTION

In FCI certain component damages are checked
 Rank value
 Reverse mount
 Value erase
 Component damage
 Reverse polarity
 Component lift
 Component shift

 FSI – FINAL SOLDERING INSPECTION

In FSI certain soldering defects are checked
 Solder Short
 Less Solder
 Non Solder
 Solder Ball
 Solder Splash

5. TESTING

STAGES IN TESTING
 ICT – In circuit Testing
 Programming stage

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 FCT – Functional Circuit Testing

 Masking
 Conformal Cotting
 OQC – Outward quality check

 ICT – IN CIRCUIT TESTING

There are certain parameters checked in Circuit Testing

 Short circuit
 Open circuit
 Compound value change

 FCT – FUNCTIONAL CICUIT TESTING

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 Checking RPM
 Component wise voltage

Only 5% of cards are send for sampling inspection

Sampling inspection include

Heat Run
Transend Run

 MASKING

Connectors and heat sink are covered with rubber caps

(3 connectors and I heat sink is covered at the time of masking)

 COATTING

Coating is the process which is done to avoid moisture content affecting the PCB’s
All components are cotted excluding 3 connectors and 1 heat sink
Coating inspection is done by passing UV light.

 OQC – OUTWORD QUALITY CHECK

OQC is combination of FCI and FSI

It is done to check the
 Cotting
 Gluing
 Individual components are checked
 Soldering defects are checked
 Components damages are checked

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CUSTOMER RELATIONSHIP MANAGEMENT

4 PROCESSES
 Lead generation
 Enquiry handling
 Order handling
 Customer feedback

NEW PRODUCT DEVELOPMENT

PROCEDURE OF NEW PRODUCT DEVELOPMENT
 Input Finalisation
 Risk Analysis
 Activity planning
 Part development with suplliers
 Process design
 First article preparation and submission
 Escort pilot lot
 Quality planning sign off

SCM - SUPPLY CHAIN MANAGEMENT

SCM PROCESS
 Selection, Evaluation and Re- Evaluation of suppliers
 Sourcing
 Material Requirement planning
 Supplier Performance Monitoring
 Supplier Development
 Outsourcing of Processes
 Obsolescence Management
 Logistics Management

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2.6 PRODUCT PROFILE

Kaynes primarily focuses on providing services in systems design and engineering, equipment
installation, and commissioning. They also specialize in offering support for on-board systems.
Additionally, their expertise extends to repairing electronic cards at the component level, re-
engineering, and managing obsolescence for electrical equipment. Moreover, they excel in PLC
programming, systems commissioning, and systems integration activities.

PCBAs (printed circuit Board assembly)

A Printed Circuit Board (PCB) is a layered structure made up of conductive and insulating
materials. Its main purpose is twofold. Firstly, it serves as a platform to securely attach electronic
components onto its outer layers using soldering. Secondly, it facilitates dependable electrical
connections between the terminals of these components in a controlled and precise manner, which
is commonly known as PCB design.

Figure 2.6 printed circuit board

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2.7 Ownership pattern of Kaynes:

Promoters are individuals or groups who initiate the formation of a company or a business venture.
They

bring together the necessary resources and take the necessary steps to set up the business, often
with the aim of making a profit.

1. Savita Ramesh- Chairperson of the board

2. Ramesh Kannan - Managing Director
3. Jai Ram p Sampath - Whole Time Director and Chief Financial Officer
4. Anup Kumar Bhat - Independent director
5. Heinz Franz Moitzi - Independent director
6. S G Murali - independent director
7. Koshy Alexander - Independent Director
8. Poornima Ranganath- Independent Director

Figure 2.7 Board of Directors

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2.8 CERTIFICATIONS:
1. ISO-9001:2015 - International organization for standardization
QMS-Quality management System,
2. ISO 14001:2015
EMS-Environment Management System
3. ISO – 45000-2018
OHSAS- Occupational Health and Safety Assessment
4. IMS-Integrated management System
Included all the above three certificates
5. IATF 16949-2016
IATF- International Automotive task force

Figure 2.8 Certificates

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Chapter 3
MCKINSEY 7S FRAMEWORK

3.1 Introduction to Mckinsey 7s Framework

Mckinsey 7S framework developed in the early 1980s by Tom Peters and Robert Waterman, two
consultant working at the Mckinsey and company consulting film, the basic premise of the model
is that there are seven internal aspects of an organization that need to be aligned if it is to be
successful.

The 7s model can be used in a wide variety of situations where an alignment perspective is useful,
for example to help you:

 Improve the performance of a company;

 Examine the likely effects of future changes within a company;
 Align departments and processes during a merger or acquisition;
 Determine how best to implement a proposed strategy.

Figure 3.1 Shows figure of McKinsey 7S framework

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The 7 elements identified in the McKinsey 7s model can be categorized as being hard or soft in
nature. They are identified as,

It shows the hard and soft elements in the Mckinsey 7S model.

Hard elements Soft elements

Strategy Shared values

Structure Skills

Systems Style

Staff

Quick Response in the kaynes technology make use of the McKinsey 7s model to
regularly enhance its performance, and implement successful change management processes.
Quick response in the garment industry focused on the 7 elements identified in the model to ensure
that its performance levels are consistently maintained, and improved for the offerings.

▪ Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and systems. The
hard elements of the model are easier to identify, more tangible in nature, and directly controlled
and influenced by the leadership and management of the organization.

3.1.1 Strategy of Kaynes Technology India Ltd

Strategy is the plan of action which the company adopts to achieve its objectives in a competitive
situation. Strategy explains what the objectives of the organization are how to achieve these
objectives. Business strategy is the choice of direction and action of the company, adopted to
achieve its objectives.

 Valuing time to market – always excelling in OTD.

 Having a productive work culture.
 Maintaining highest level of ethics.
 Offering a very flexible operations model.
 Building a very strong emphasis on quality and productivity.
 Being an equal opportunities employer.

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3.1.2 Structure of Kaynes Technology India Ltd

Structure is business needs to be organized in a specific form of shape that is generally referred
to as organizational structure. Organizations are structured in a variety of ways, dependent on
their objectives and culture.

Chart 3.1.2 Shows Organisation structure followed in Kaynes Technology

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3.1.3 System of Kaynes Technology India Ltd

The company is using quality management system. Quality management system of organization
based upon quality procedures as laid out in accordance to company quality manual.

System is procedure that are both the formal and informal procedure that makes the organisation
go day by day and year by year. The system include the performance appraisal system, Kaizen
system.

Kaynes Technology India Ltd performance appraisal system

Appraisal form

Annual performance reporting

Review of critical resources department

Evaluating managing points and check points

Attendance checking

Skills and attribute review

Analysis of training needs

Fix critical resource and self-development

Chart 3.1.3 shows the performance appraisal system in Kaynes Technology India Ltd

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It initiates and drive continuous improvement across the organization through Kaizen and Small
group activities to maximize the yield and productivity. In addition, we drive the supplier
developments through supplier audits and SCAR.
Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It
is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work
and teaches people how to perform experiments on their work using the scientific method and how
to learn to spot and eliminate waste in business process used in non-manufacturing environments.
This group is often guided through the Kaizen process by a line supervisor sometimes this is the
line supervisor’s key role. Kaizen on a broad, cross-departmental scale in companies, generates
total quality management and frees human efforts through improving productivity using machines
and computing power.

3.1.4 Staff of Kaynes Technology India Ltd

As per company policies HR department. Hire only capable and promising candidates, also
employees have to be provided growth potential.

Staff Total no. of employees

Technical 380

Non-technical 45

Managerial 35

Contract Employees 40
Total 500

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3.1.5 Shared Value of Kaynes Technology India Ltd

Shared values also called as super ordinate goals are the core values of the company that are
evidence in the corporate culture and the general work ethic. It is the interconnecting center of
McKinsey’s model.

 Focus on customers :
Kaynes technology builds enduring partnerships based on mutual trust and commitment
with its customer.
 Profitability :
Kaynes technology ensures its competitiveness with cost consciousness and the correct
targeting of customer.
 Continuous improvement :
Kaynes technology guarantees the company’s success by developing its operation in
accordance with customer’s needs.
 Respect for the individual :
Kaynes technology supports open interaction and a constructive team spirit in its working
community.

3.1.6 Skills of Kaynes Technology India Ltd

A skill refers to distinctive capabilities of personal or of the organisation as a whole. They are the
core competencies of the employees working for the company.

The core competencies of the employess at kaynes are:

 Mechanical design
 Software design
 Power electronics design
 Component engineering
 Tester design
 Component engineering

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3.1.7 Style of Kaynes Technology India Ltd

Style is the behavioral elements the organizational leadership users and cultural of interaction. It
may be autocratic, democratic or participative and free rein leadership styles. Kaynes follows
democratic leadership style where leaders encourage groups members to participate but retain the
final say over the decision-making process i.e. decentralized. Group members are well informed
about challenges and situation by the lead.

3.2 PORTER’S FIVE FORCE MODLE

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is
frequently used to identify an industry's structure to determine corporate strategy. Porter's model
can be applied to any segment of the economy to understand the level of competition within the
industry and enhance a company's long-term profitability. The Five Forces model is named after
Harvard Business School professor, Michael E. Porter.

Figure 3.2 Shows Porter’s Five Force Model

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3.2.1 Threats of New Entry: Low

The potential new entrant in the electronics market is Low due to following reasons.
 Huge capital requirement for a firm to enter in this segment.
 Rapidly evolving technology is another entry barrier as for a new entrant, it is very
difficult to build technology advanced products rights from the start as they will
need time to understand the actual evolutions in this field.
 Brand loyalty to existing firms. Since brand loyalty is moderate in this sector, hence
this also imposes entry threat on new entrants.

3.2.2 The Bargaining Power of Suppliers: Low

According to present market conditions, in electronics sector also the bargaining power
of supplier is on Low end because of following reasons.
 Product differentiation is very low. Since most of the companies are developing
similar kinds of products, therefore the power is very less.
 Since there is no or very negligible switching cost, hence this again makes the
supplier power to be on lower end.
 Impacts on inputs on cost:- Since in this sector by changing the inputs i.e. input
technology or other raw material, the firms cannot drastically differentiate on price
in order to be competitive, hence this also leads to reduced in supplier power.

3.2.3 The Bargaining Power of Buyers: High

The bargaining power of buyer is High because of following reasons.
 Use of internet to get all the information: - Buyer has a power to go online and
compare the prices and features of various products online. Hence buyers are more
informative and educated regarding products and this leads to increase in their
power.
 Mid to High price sensitivity of buyer. Since buyer are generally very price
sensitive, so this also leads to increase in buyer power.

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 Feedbacks and suggestions available over internet. With era of internet, there is also
increase in buyer power as buyer can now easily read the feedback and suggestions
regarding the products. So they are more informed and also influence buying
decisions of other powers.
 Buyer switching cost is very less; hence this also leads to increase in buyer power

3.2.4 Threat of substitute products: Medium

Threat of substitutes are again from Mid to High.
 Due to changing technology, there is high threat of substitute products in this
industry.
 Buyer have huge propensity to substitute if any firm provide more technologically
advanced product.

3.2.5 Intensity of Competitive Rivalry: High

The competitive rivalry is again very High in this industry due to following reasons.
 There is continuous innovation in this industry making an intense competitive
rivalry. Hence innovation leads to sustainable competitive advantage.
 Powerful competitive strategy:- Every firm has a different strategy and core
competencies which make their rivalry even more intensive.

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Competitors Information:
We operate in the ESDM industry, which is highly competitive. Our competition varies by market,
geographic areas and type of products manufactured. As a result, to remain competitive in our
markets, we must continuously strive to reduce our costs of production, transportation and
distribution and improve our operating efficiencies. We compete with a variety of independent
suppliers and distributors, as well as the in-house operations of certain OEMs. We compete
primarily on the basis of product quality, technology, cost, delivery and service, as well as quality
and depth of senior level relationships as well as the operating level relationships.

As per the Frost & Sullivan Report, Key ESDM Companies in India are:

1. Bharat FIH:
• Bharat FIH, the subsidiary of the FIH Mobile Ltd, a Foxconn Technology Group
Company, is currently India’s leader in manufacturing and services of handset and the
wireless communications. The company have been a part of the Indian growth story since
2015, leading an unmatched manufacturing revolution. Bharat FIH is one of the largest
EMS providers in the country serving the local and the international brands.
• Formerly known as the Rising stars Mobile India, the company entered and established
their presence in India in the year 2015 at Sri City, Andhra Pradesh. By 2017, the company
had expanded their capacity to Sungavarchatram and Sriperumbudur near Chennai, with
added capabilities.
2. Dixon Technologies India Limited:
• Dixon Technologies, located in Noida, is an Indian Electronics Manufacturing Services
Company that was founded in 1993 and has been leading this space in India. Initially, the
company began production of colour televisions.
• Dixon has now expanded its activities to numerous electronic sub-segments. The
company offers design-focused solutions in consumer durables, home appliances, lights,
mobile phones, and security systems, as well as repairing and refurbishing services for a
wide range of products.
• Since its initial public offering in 2017, the company has been listed on the BSE and NSE

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3. Amber Enterprises India Limited:

• Amber Enterprises was established in 1990 and was converted to a public limited
company in 2017
• The company is a prominent solution provider for Air conditioner OEM/ODM Industry
in India. It has a dominant presence in RACs complete unit and deals in major RAC
components.
• The company provides greater energy efficiency as well as experience in indoor, outdoor,
split, and window air conditioners. It also sells both AC and non-AC components.
4. SFO Technologies Private Limited:
• SFO Technologies, a subsidiary of the Nest Group of Companies, was founded in 1990
and is headquartered in Kochi, Kerala
• It has evolved from a single manufacturing facility to a diversified corporation with a
global footprint and multi-domain competence in EMS, ODM, SI, and ADM
• SFO Technologies has a global presence with front end operations in all continents and
the products and services are targeted at technology fields across diverse domains.
• SFO can provide turnkey solutions, product development and maintenance, R&D support,
and customized services across a wide range of domains and technologies.
5. Syrma SGS Technology:
• Syrma SGS Technology, founded in 1978 by industry pioneers (Tandon family), is
located in San Jose (California), and Chennai (India), developing quality technology
products. It is one of India's leading exporters of electronics, providing a high-value
integrated design and production solution for internationally recognized OEMs.
• Syrma SGS is one of the leading ESDM company with a focus on technology-based
solutions and ODM business. Unlike the traditional OEM or ODM business model, which
only focuses on certain stages of the production process, the company’s business model
starts from product concept design and focuses on every segment of the overall industry
value chain.

• Syrmas' business approach leads to continuous advancements in product technology,

structure, and functional design to meet customer requirements and lead the industry in
development.

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Chapter 4

SWOT ANALYSIS OF KAYNES TECHNOLOGY INDIA LTD

4.1 Introduction to SWOT Analysis.

A SWOT Analysis is a framework for identifying Strengths, Weaknesses, Opportunities and

Threats. It is often presented a 2x2 matrix and can be applied to any business and industry, from
non-profit charities through to large corporate entities.

The structure of the grid means the top row looks at all internal issues, both positive and negative,
while the bottom evaluates the external factors. Similarly, the left of the grid is positive, while the
right of the grid is negative.

A well thought out SWOT will provide you with new opportunities to go for as well as ensuring
threats to your business are mitigated or eliminated.

Figure 4.1 Shows figure of SWOT Analysis

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4.1.1 STRENGTHS:
 Technological Innovation: The ESDM industry thrives on continuous technological
advancements, enabling the development of state-of-the-art electronic systems and
components
 Global Demand: There is a consistent and high demand for electronic devices worldwide,
providing a stable and lucrative market for ESDM companies.
 Skilled Workforce: The industry benefits from a proficient and specialized workforce
comprising engineers, designers, and technicians with expertise in electronics system
design and manufacturing.
 Efficient Supply Chain: ESDM companies often have well-established and efficient
supply chain networks, facilitating seamless sourcing of components and materials.

4.1.2 WEAKNESS:
 Cost and Pricing Pressure: Intense competition within the ESDM industry puts pressure
on pricing which can lead to reduced profit margins for companies.
 Rapid Technological Obsolescence: Electronics products can quickly become outdated
due to the fast pace of technological advancements, necessitating continuous innovation
and updates from ESDM companies.
 Environmental Concerns: The industry faces increasing scrutiny regarding the
environmental impact of electronic waste, resulting in stricter regulations and the need for
sustainable practices.
 Vulnerability to Supply Chain Disruptions: ESDM companies heavily rely on global
supply chains for sourcing components, making them vulnerable to disruptions caused by
trade disputes or natural disasters

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4.1.3 OPPURTUNITY:
 Internet of Things (IoT): The widespread adoption of lot devices presents ample
opportunities for ESDM companies to develop and manufacture a wide range of connected
devices.
 Electric Vehicles (EVs): The growing demand for electric vehicles creates a promising
market for ESDM companies to provide electronic systems and components for EV
manufacturing.
 5G Technology: The deployment of 5G networks opens up avenues for ESDM companies
to develop and manufacture advanced telecommunications equipment and devices.
 Emerging Markets: Developing countries with expanding middle-class populations
represent untapped markets for electronic devices, offering opportunities for ESDM
companies to expand their customer base.

4.1.4 THREATS:

 Intense Competition: The ESDM industry is fiercely competitive, with numerous global
players vying for market share, resulting in pricing pressures and reduced profitability.
 Intellectual Property Infringement: Counterfeit products and intellectual property theft
pose significant threats to ESDM companies, impacting their revenue and brand reputation.
 Geopolitical and Trade Uncertainty: Political tensions, trade disputes, and regulatory
changes can disrupt global supply chains, causing uncertainty and challenges for ESDM
companies.
 Changing Consumer Preferences: Shifting consumer preferences towards sustainability
and environmentally friendly products may require ESDM companies to adapt their
manufacturing processes and product offerings to remain competitive.

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Chapter 5
FINANCIAL STATEMENT ANALYSIS

5.1 Introduction to Financial Statement:

Financial Statement Analysis is a method of reviewing and analyzing a company’s accounting
reports (financial statements) in order to gauge its past, present or projected future performance.
This process of reviewing the financial statements allows for better economic decision making.

Globally, publicly listed companies are required by law to file their financial statements with the
relevant authorities. Firms are also obligated to provide their financial statements in the annual
report that they share with their stakeholders.

The main purpose of financial statement analysis is to utilize information about the past
performance of the company in order to predict the future performance.

It is the ultimate output of an accounting information system has the following components:

 Income statement
 Balance sheet
 Statement of cash flows
 Statement of changes in equity

Relevant financial information is presented in a structured format and accompanied by the

management discussion and analysis and balance sheet reports on the company’s assets and
liabilities and the owner’s equity and detailing the balance of income and expenditure over the
preceding periods.

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5.1.1 Consolidated balance sheet of Kaynes Technology:

2023 2022 2021

Particular

Equity and liability

Equity
68.00 68.00 68.00
Equity share capital
10.80
Instruments entirely equity in nature
1307.78 958.98 859.43
Other equity
9.05 5.49 6.62
Non- controlling interest
1395.63 1032.47 934.05
Total equity(A)

Liabilities

Non-current liabilities

Financial liabilities
170.86 97.96 295.46
Borrowings
64.36 90.17
Lease liabilities
52.41 79.06 76.61
Deferred tax(net)
32.01 27.14 23.41
Long term provisions
319.64 294.33 395.48
Total non-current liabilities

Current liabilities
2244.03 2321.01 2212.56
Financial liabilities
25.43 3.57
Lease liabilities
16.45 7.85 7.32
Current tax liabilities(net)

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185.82 119.36 77.23

Other current liabilities

6.67 2.56 6.39

Short term provision
2478.40 2454.35 2303.50
Total current liabilities(C)

4193.67 3781.15 3633.03

Total equity and liabilities(A+B+C)

Assets

Non-current assets
570.65 502.22 453.29
Property, Plant, Equipment
126.94 45.14 49.52
Intangible assets
10.06 49.75 21.96
Capital work in progress
116.17 69.70
Intangible under development
78.58 86.40
Rights-of-use Assets
23.44 23.44 23.44
Goodwill

Financial assets
16.89 15.97 21.36
1 investment
31.48 26.14 29.47
2 loans and deposits
13.00 12.96 9.15
3 other financial assets
14.51 44.90 22.11
Other non-current assets
1001.72 876.62 630.30
Total non-current assets

Current assets

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1638.65 1511.10 1217.82

Inventories

Financial assets
1217.48 936.49 1229.61
1 Trade receivables
30.50 7.43 8.35
2 Cash and cash equivalents
112.05 115.37 315.32
3 Bank balance
18.20 51.18 63.76
4 Loans and deposits
2.02 6.79 3.26
5 Other financial assets
173.05 276.17 164.61
Other current assets
3191.95 2904.53 3002.73
Total current assets(B)

4193.67 3781.15 3633.03

Total assets(A+B)

5.1.2 Consolidated profit and loss account:

Particular 2023 2022 2021

Income

Revenue from operation 4206.27 3682.38 3642.31

Finance income 10.62 11.97 11.41

Other income 29.74 7.31 12.25

Total income (A) 4246.63 3701.66 3665.97

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Expenses

Cost of material consumed 2882.99 2603.38 2463.15

38.23 (186.58) (46.58)

Changes in inventories of finished goods and traded
goods

Employee benefit expenses 458.99 424.31 434.03

Depreciation and amortization expenses 100.76 83.79 51.31

Finance cost 239.79 236.02 187.19

Other expenses 477.15 427.94 441.23

Total expenses(B) 4137.91 3588.86 3530.33

Restated profit before tax (A-B) =C 108.72 112.80 135.64

Tax expenses

Income taxes

1 current tax 36.23 19.55 30.27

2 Earlier year tax adjustments (0.47) (0.73)

Deferred tax (24.84) 0.17 8.82

Total tax expenses(D) 11.39 19.25 38.36

Restated profit after tax (C-D) =E 97.33 93.55 97.28

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Related other comprehensive income/loss

Items that will not be reclassified subsequently to

profit or loss

Re-measurement gains/loss on defined benefit plans (5.41) 9.16 (0.39)

(1.70) 0.06 (0.94)

Exchange differences in translating financial
statements of foreign operations

Income tax effects 1.79 (3.22) 0.37

(5.32) 6.00 (0.96)

Other comprehensive income for the period, net
of tax (F)

92.01 99.55 96.32

Restated total comprehensive income for the
period, net of tax (E+F)

Less: share of profit/loss of minority interest 3.56 (1.20) 0.27

88.45 100.75 96.05

Total comprehensive income for the period, net of tax

Earnings per share (nominal value of Rs. 10

each)

Basic 2.28 2.32 2.38

Diluted 2.15 2.32 2.38

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5.1.3 Consolidated statement of cash flow of Kaynes:

Particular 2023 2022 2021

A. Cash flow from operating activities
Net profit before extraordinary items and tax 108.72 112.80 135.64
Adjustment for
Depreciation and amortization expenses 100.76 83.79 51.31
Provision for doubtful debts -
Lease straight lining adjustment
Provision for withholding tax receivable
Fair valuation impact of security deposit
Unrealized foreign exchange gain (net) (0.13) 1.63
Interest expense 239.79 236.02 187.19
Interest on income tax
Interest income (6.71) (7.63) (6.38)
Operating profit before working capital changes, 442.43 426.61 367.76
extraordinary items

Adjustment for
(Increase)/decrease in Inventories (127.55) (293.28) (356.10)
(Increase)/decrease in Trade receivables (280.99) 293.12 (129.20)
(Increase)/decrease in Loans and advances 160.48 (120.26) (76.88)
Increase/(decrease) in Trade payables and other 102.03 164.93 (83.76)
liabilities
Increase/(decrease) in Provisions 8.98 (0.10) 8.70
Cash generated (used in) / From operation 305.38 471.02 (11.08)
Income tax received/(paid) (28.08) (18.55) (64.73)
Net cash from operating activities 277.30 452.47 (75.81)
B Cash flow from investing activities
Purchase of fixed assets (249.95) (312.23) (105.37)

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Sale of fixed assets

Interest received 6.71 7.63 6.38
Proceeds from sale of investments/fixed deposits 2.40 205.34 (309.85)
matured

Net cash used in investing activities (B) (240.84) (99.26) (408.84)

C. Net cash from /(used) in financing activities
Proceeds from issue of Share capital
1 equity 0.00
2 preferences 10.80
Share premium received
1 Equity
2 Preference 259.20
Repayment of long-term borrowings 72.90 (197.50) 109.82
Proceeds from short term borrowings (116.50) 79.39 563.38
Interest expense (239.79) (236.02) (187.19)
Net cash from/(used) in financing activities (13.39) (354.13) 486.01
Net increase in cash and cash equivalents 23.07 (0.92) 1.37

Cash and cash equivalents as on April 1 7.43 8.35 6.98

Cash and cash equivalents at the end of period 30.50 7.43 8.35
Components of cash and cash equivalents
Balance with scheduled banks on
Current account 30.19 4.51 8.01
Deposit account 0.18 0.15 0.13
Cash on card
Cash on hand 0.13 2.77 0.21
30.50 7.43 8.35

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5.1.4 RATIO ANALYSIS

The relationship between two figures expressed mathematically is called a ratio. It is a numerical
relationship between two numbers. Ratio analysis is the process of determining and interpreting
numerical relationships based on financial statements. Ratio analysis is one of the important
techniques that can be used to check the efficiency with which working capital is a being managed
by a firm. It is the technique of interpretation of financial statement with the help of accounting
ratio derived from the balance sheet and profit and loss account.

The ratio can be analysis by following figure ratio’

Figure 5.1.4 Shows figure of Ratio analysis

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LIQUIDITY RATIO
A business requires liquid funds in order to meet its short-term commitments. Liquidity is the
ability of an organization to pay the amount as and when it becomes due, to the stakeholders. When
an organization is unable to fulfil its short-term commitments, it adversely affects its credibility as
well as the credit rating.

There are two types of liquidity ratio

• Current Ratio
• Quick Ratio

1.CURRENT RATIO:

Current ratio is the relationship between the total assets and current liabilities. This a barometer
of general measure of liquidity and state of trading. It’s also known as working capital ratio, current
assets are those, the amount of which can be realized within period one year. Current liabilities are
those amounts which are payable within a period of one year.

Current ratio = Current assets / Current liabilities

CURRENT CURRENT CURRENT

YEAR ASSETS LIABILITIES RATIO

2023 3191.95 2478.40 1.29

2022 2904.53 2454.35 1.18

2021 3002.73 2303.50 1.30

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Current ratio
1.32
1.3
1.28
1.26
1.24
1.22
1.2
1.18
1.16
1.14
1.12
2021 2022 2023
CURRENT RATIO

ANALYSIS:

The Current ratio during the year 2021 is 1.30:1 and during the year 2022 is 1.18:1 and during the
year 2023 is 1.29:1. Current Ratio has increased during the year 2022, when compared to previous
year.

INTERPRETATION:

The ideal-current ratio is 2:1. In many of the circumstances, creditor would prefer a high current
ratio as it indicates most likely repayment to the creditors. But at the same time high current ratio
is not favourable for investors. the current asset is more than the current liability, and current ratio
has increased compared to 2022 in 2023. Hence company enjoys liquidity & able to meet its current
liability out of current assets & it has Sufficient capital.

QUICK RATIO:

Quick ratio is concerned with the relationship between liquid assets and liquid liabilities. It is
refinement of the current ratio and its other name liquidity ratio and acid test ratio. Liquid assets
comprise all current assets minus stock and prepaid expenses. Liquid liabilities comprise all
current liabilities minus bank overdraft and cash credit.

Quick Ratio = Quick Assets / Current Liabilities

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YEAR QUICK ASSETS CURRENT LIABILITIES QUICK RATIO

2023 1553.3 2478.40 0.62

2022 1393.43 2454.35 0.56

2021 1784.91 2303.50 0.77

Quick Ratio
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2021 2022 2023

QUICK RATIO

ANALYSIS:

The Quick Ratio during the year 2021 is 0.77 and during the year 2022 is 0.56 and during the year
2021 is 0.62. Quick Ratio has decreased during the year 2022, when compared to previous year
2021.

INTERPRETATION:

The ideal -Quick ratio is 1:1. Quick ratio of the company is not satisfying the standard. It means
that business is insufficiently liquid and cannot pay its out of quick assets. The quick ratio indicates
the extent to which the company would pay its current liabilities without relying on the sale of
inventory

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DEBT TO EQUITY RATIO:

The debt-to-equity ratio shows the proportions of equity and debt a company using to finance its assets
and it signals the extent to which shareholder's equity can fulfill obligations to creditors, in the event a
business decline

Debt to equity ratio = Total Liabilities / Total Shareholders Fund

YEAR TOTAL TOTAL DEBT TO

LIABILITIES SHAREHOLDERS EQUITY RATIO
FUND
2023 4193.67 1395.63 3.0

2022 3781.15 1032.47 3.6

2021 3633.03 934.05 3.8

Debt to equity ratio

4
3.5
3
2.5
2
1.5
1
0.5
0
2021 2022 2023

debt ti equity ratio

ANALYSIS

During the year 2020 – 2021 the debt-to-equity ratio is 3.8 and during the year 2022 is 3.6 and
during the year 2023 is 3.0 . There is a gradual decrease in debt-to-equity ratio year on year.

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INTERPRETATION:
Generally, a good debt-to-equity ratio is around 1 to 1.5. However, the ideal debt-to-equity ratio
will vary depending on the industry, as some industries use more debt financing than others. A high
debt-to-equity ratio is often associated with high risk, it means that a company has been aggressive
in financing its growth with debt.

CASH RATIO:

The cash ratio compares a company's most liquid assets to its current liabilities. The ratio is used
to determine whether a business can meet its short-term obligations in effect, whether it has
sufficient liquidity to stay in business.

Cash ratio= cash and cash equivalents / current liabilities

YEAR CASH AND CASH CURRENT CASH RATIO

EQUIVALENTS LIABALITIES
2023 30.50 2478.40 0.012

2022 7.43 2454.35 0.003

2021 8.35 2303.50 0.004

Cash ratio
0.014
0.012
0.01
0.008
0.006
0.004
0.002
0
2021 2022 2023

cash ratio

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ANALYSIS
During the year 2021 the cash ratio was 0.004. The cash ratio decreased in the year 2022 from
0.004 to 0.003 and it is further increased from 0.003 to 0.012 in the year 2023.

INTERPRETATION
The standard ratio for cash ratio is 0.5:1. The cash ratio of Kaynes technology is not satisfactory.
Because in the year 2021 it is decreased so is not maintaining a proper cash.

DEBT RATIO:

The debt ratio is a financial ratio that measures the exact of a company’s leverage. The debt ratio
is defined as the ratio of total liabilities to total assets, expressed as a decimal or percentage.

Debt ratio= Total liabilities / Total assets

YEAR TOTAL TOTAL ASSETS DEBT RATIO

LIABILITIES

2023 4193.67 4193.67 1:1

2022 3781.15 3781.15 1:1

2021 3633.03 3633.03 1:1

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Debt Ratio
1.2

0.8

0.6

0.4

0.2

0
2021 2022 2023
debt Ratio

ANALYSIS
As assets is equal to total liabilities, we can analyses that the company’s debt ratio is satisfactory.

INTERPRETATION

In the debt ratio, ratio should always be 1:1. The ideal debt ratios of 0.4 or lower are considered
better, while a debt ratio of 0.6 or higher makes it more difficult to borrow money. Higher the ratio
implies more levered company and it shows that company has more financial risk. A ratio of 1
means that total liabilities equal total assets. In other words, the company would have to sell off
all of its assets in order to pay off its liabilities.

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Chapter 6
LEARNING EXPERIENCE

It was a great experience while doing internship project at Kaynes Technology manufacturing
services. I learned so many things practically and that practical things I have read it in classroom
has theoretical concept.

On the first day of my project they explained me about the organisation vision, mission and
quality policy. Also gave me the brief introduction about the company and how organisation is
working presently. It was a nice experience to me.

Also I got an opportunity to learn the 7s MCKensey model and ratio analysis.

The HR executive Ms Yashaswini CP instead of her busy schedule she made a time and
thoughts about the present system of the company. It gave a practical exposure to the corporate
world.

Finally the internship at Kaynes manufacturing services gave me the practical exposure to the
corporate world and helps me in designing my career. I have experienced a practical supplicabity
of the theory.

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 Bibliography and Reference:

• http://WWW.Kaynestechnology.net

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