Amit Sinha, MD & CEO, Dexcel Electronics Designs, is responsible for the strategic direction and management of Dexcel Electronics. Prior to Dexcel, Amit had co-founded MindShell Software which successfully got merged with Dexcel Electronics. Prior to MindShell he had a stint technical experience working with Philips Electronics in Bangalore, Holland and Singapore. Amit has a very strong experience working on Embedded Product and Technologies. Amit holds a Bachelor Degree in Computer Sc. Engineering from National Institute of Technology (NIT) Surathkal, Karnataka and had attended Management Program in XLRI Jamesdpur, India.
Dexcel Electronics Designs (P) Ltd., headquartered at Bangalore, is a high-end embedded Product Engineering Company for the past 13 years with fabless ODM/OEM box build capability. It carries business transactions in the areas of Defense, Industrial, Telecom and Semiconductor segments. The company deals with a varied range of customized embedded solutions and products for various segments specializing in low power high performance designs, space constraint miniaturized designs and ruggedized high dynamics system for military use. Dexcel is a renowned and proven FPGA design center with advanced capabilities in Altera, Actel, QuickLogic, and Xilinx devices. We have design expertise on all major platform technologies like ARM, PowerQuicc, X86, DaVinci, OMAP, Blackfin, AVR, NIOS, Microblaze and many more.
Replying to Anil Mascarenhas of IIFL, Amit Sinha says, “There is still a great amount of gap in skilled resources required to address the product engineering requirement. Since we want to grow very aggressively and will require funds to grow, we are open for dilution as well.”
Give us an overview of the embedded design industry. What are the trends being witnessed globally and in India?
The software industry has grown at quite a massive pace in India; however similar growth and investments have not been visible in the embedded sector. Looking at the demand supply gap it’s high time that this industry is looked at seriously with more participation from Govt and other communities.
Embedded design industry forms part of the ESDM ecosystem; demand for which is poised for massive growth in the country. It’s projected that by 2020 the demand would touch nearly US$ 400bn, however, the supply if it grows at the current growth rate will not be able to fulfil the same and will amount to approximately 290bn dollar deficit. This creates a unique opportunity in the ESDM Sector in India to cater to the domestic Indian demand as well as emerge as an electronic export hub.
For the lay reader, explain to us the role played by embedded design services. Give us some anecdotes of how Dexcel’s services function?
Embedded design services forms the core engine in any electronics product development lifecycle. The design decides how a product’s defined spec is going to be met within all kinds of electrical, physical , performance and cost limitations. This is where an experienced design services company like Dexcel’s role comes into play. Dexcel has got experience working in extremely thin miniaturized electronics to large ruggedized rack mount systems. At Dexcel we have designed several products which require low power and high performance
What would you say is your USP?
Our USP is that we are amongst the very few Design Houses who are approaching ODM business as an extension to Product Engineering Business in a fabless model. We are also amongst very few companies in India who have complete white labeling capability for its customers. We strive to Design for Excellence.
What kind of interest are you seeing among youngsters for embedded design? How do you attract and retain talent? What is your employee strength?
Embedded design is something which most of youngsters feel quite charmed about as this is one of the areas people can feel their development in tangible form. At the end of product life cycle people can feel the product in their hands which they have developed which is unlike pure software development.
Give us a geographical distribution of your revenues? Which are the markets that offer huge potential for Dexcel?
Majority of our revenue comes from India business, however we feel that there is great lot of possibility of duplicating our success stories in India to other Geographies.
What are some of the challenges and opportunities for the embedded industry?
I feel that there is still a great amount of gap in skilled resources required to address the product engineering requirement. A non availability of such a resource in right time could be a real challenge.
Also I feel there is a great amount of gap in terms of dealing with high end of embedded manufacturing in India. Some of the niche technologies of manufacturing with e.g. multi layer flex material PCBs with active electronics there are extremely low number of companies who can do that.
How do you view the future of the embedded design services industry?
Like I said earlier because of the great demand supply gap in ESDM sector, there will be lot of avenues for local players to up their ante and bridge the gap.
Briefly explain to us your business model. What is your mix between products and services?
Our business model is pretty much straight forward. In most of the cases we offer complete end to end design and realization of the product until the ODM side where our customers are only required to put their label on it. However not every business gets into that model in which case we also take small piecemeal activity of designing subsystems in the overall design cycle.
Most of our businesses come from services although in designing complete products with enclosures included. We are currently in the process of identifying few areas where we will be developing products to meet the demand in those areas.
Which are the platforms that Dexcel is compatible with?
At Dexcel we are pretty familiar with most of the popular semiconductor and software platforms. A testimonial to that is our design partnership with several leading companies worldwide. To name a few are Altera, Texas Instruments, Analog Devices, Xilinx, Intel etc.
You also provide IP integration services. Tell us more about this.
Some of the products that we engineer require use of third party IPs for the realization. This basically requires skill set to understand those IPs at a very technological level and integrate during the product design. This largely happens in Programmable logic like FPGA based designs where a particular functionality needs to be custom developed either needed for proprietary reasons or because of non availability of the same in the readymade form, however these functionalities need to still talk to interfaces which are niche and still generic. In such cases we opt for procuring IPs from third party and integrate in our design.
Comment on your partnerships.
We have signed up with several design partnerships with leading semiconductor companies. Examples are
Intel – Early Access Program / India Design House Partner Program
Altera – Authorized Training Partner ( Only design services partner in India)
Altera – Design Services Network Partner
Analog Devices – DSP Collaborative
Texas Instruments – Third Party Developer
Atmel - AVR 8-Bit RISC Consultants – Asia
Microchip- Authorized Design Partner
Xilinx – Associate Alliance Member
Brief us on your financials. What is the outlook?
I may not be at liberty to divulge the financials however our outlook looks quite great. We should be able to grow at 30-40% CAGR in coming years
What is the vision for your company?
The vision of the company is to be leading global player in the Product Engineering Space with a view to OEM / ODM all the designs that we do at Dexcel
What are your capex plans? How would they be funded?
Since we largely work in fables ODM/OEM model we don’t require lot of funds for Capex. However since we are growing and carry ambitions of serving customers worldwide much more aggressively, we do funding for expansion and growth in the areas of sales, marketing and infrastructure development. We have been talking to few interested strategic and P/E guys for funding our growth strategy. So far we have been very well supported by our angel investor Tecnomic.
What is the shareholding pattern of the company? Any plans to dilute stake?
The shareholding is largely held between Tecnomic & the Dexcel management. Like I mentioned above since we want to grow very aggressively and will require funds to grow, we are open for dilution as well.