Aimtron Electronics Ltd Management Discussions

1https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025 ²https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353 ³https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353 ⁴https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154474&ModuleId=3# ⁵https://www.pib.gov.in/FactsheetDetails.aspx?Id=149209

The global ESDM industry continued its robust expansion through 2024 and into 2025, propelled by rising demand for advanced electronics across sectors such as consumer devices,automotive,medicalanddefense.Keytrendsincluded accelerated adoption of automation, digital manufacturing and sustainability initiatives, with significant growth in electronic design automation (EDA) and printed circuit board (PCB) technologies enhancing efficiency and innovation. Regional markets in the Americas, Asia Pacific all reported strong performance, supported by ongoing investments in semiconductor manufacturing and a shift toward smart, miniaturised and high-reliability products. The sectors resilience and adaptability have established it as a critical pillar of global technology supply chains, driving employment growth and advancing next-generation applications such as electric vehicles and connected healthcare devices.

Indiaistransitioningintoasignificantglobalhubforelectronics manufacturing, with the sector projected to achieve a value of USD 300 billion by FY 2025–26. This upward trajectory is underpinned by structural reforms, favourable policy frameworks, and incentives aimed at attracting investments and fostering domestic capability. One of the key enablers has been the rising scale and sophistication of Indias Electronics Manufacturing Services (EMS) industry, which is integral to Indias broader ambitions in the global supply chain.

The global EMS market is forecast to reach USD 1,145 billion by 2026, reflecting the increasing demand for outsourced manufacturing and assembly services. For India, domestic consumer electronics demand alone is expected to grow from USD 9.8 billion in 2021 to USD 21.18 billion by 2025, illustrating the internal market potential that complements its export readiness.

The ecosystem is evolving rapidly through:

-Product innovations tailored to emerging technologies, enabling faster entry into new markets.

-Customer-driven platforms that support flexible pricing, real-time feedback, and deeper market engagement.

-Automation-led production efficiencies that reduce cost structures and enhance throughput.

-Transition toward asset-light, scalable models that align with long-term strategic competitiveness.

The US Electronics System Design & Manufacturing (ESDM) industry maintained its position as a global leader in 2024 through continued innovation, targeted investments, and responsiveness to changing market dynamics. EMS providers played a central role by handling complex supply chains and deploying modular production setups that enabled faster product rollout and scalable customization. Strategies such as nearshoring and dual-region manufacturing, particularly US-Mexico frameworks, helped mitigate logistics disruptions and improve delivery timelines.

The integration of IoT and AI across design and production enhanced capabilities in real-time monitoring, predictive maintenance, and process automation. Advances in materials science supported the development of smaller, more efficient components for use in automotive, medical, consumer, and clean energy sectors.

Effortsaroundenvironmentalimpactgainedmomentum,with increased focus on low-power chip architectures, sustainable materials, and reuse-driven manufacturing models. The use of digital twin technology accelerated design-to-production timelines, while innovations like software-defined silicon and heterogeneous integration pushed the performance boundaries of semiconductor products.

Over the past decade, several Asia-Pacific nations transformed from cost-effective assembly bases into robust EMS hubs. Taiwan strengthened its position with a flourishing semiconductor ecosystem and advanced electronics manufacturing capabilities accounting for roughly 20% of the global chip market. Meanwhile, Vietnam leveraged FDI inflows and government-driven industrial parks to double its electronics exports in four years, sustaining around 5% EMS market CAGR between 2020 and 2026. Singapore and China similarly capitalized on escalated demand in consumer, industrial, and automotive electronics, supported by expansion in 5G infrastructure and automation technologies. Together, these economies evolved from low-cost assembly platforms to value-added EMS players offering sophisticated prototyping, design support, and advanced manufacturing services.

India currently mirrors where these countries stood a decade ago but has compelling momentum to surpass them. Its EMS market hit around USD 80 billion in 2024 and is projected to reach USD 186 billion by 2035 at a CAGR of approximately 7.9%.⁷ Backed by government initiatives like ‘Make in India, substantial fiscal incentives, and the strategic ‘China + 1 supply chain shift, India is rapidly climbing the EMS value chain. With fast-growing domestic consumption of mobile devices, consumer electronics, automotive electronics and lighting, India has a decade-long runway to evolve into a regional EMS powerhouse just as Taiwan, Singapore, Vietnam, and China did before it.

The global Electronic Manufacturing Services (EMS) industry is a crucial pillar of the electronics sector. The industry offers a wide array of services, such as design, assembly, manufacturing, testing and aftermarket services for a broad spectrum of electronic products and parts. During CY 2024 the EMS industry was valued at an estimated USD 577 billion.⁸ The valuation reflects its vast scale and highlights its critical role in bolstering industries, such as consumer electronics, automotive, telecommunications, healthcare and industrial automation. EMS providers are gaining importance as manufacturers increasingly prefer to outsource complex and high-precision electronic parts, especially for rapidly expanding markets like Electric Vehicles (EVs), IoT devices and advanced consumer electronics. Shifting trends such as the integration of automation, robotics and AI in production processes, which increase efficiency and quality of products are further shaping the market.

Geographically, Asia Pacific commanded a 45.1% market share in CY 2024. This was led by the presence of top consumer electronics brands and a vast consumer base. Following Asia Pacific, North America and Europe hold considerable shares of the market directed by strong development in the automotive, healthcare and industrial automation sectors.⁹ The competition is further intensified by supply chain challenges, cost pressures and the need for sustained technological innovation.

The global automotive industry is experiencing modest but steady growth with light vehicle sales projected to rise from 84.0 million units in 2024 to 85.1 million units in 2025, a 1.3% year-over-year increase.¹⁰ The sectors momentum is driven by rising demand for hybrid and electric vehicles, ongoing advancements in autonomous driving technologies, and robust production and export activities in key markets such as China and Asia-Pacific. Regulatory pressures for lower emissions and the push for electrification are also shaping industry priorities, with hybrids and electric vehicles gaining significanttractionamongbothmanufacturersandconsumers

The transformation of the automotive industry is increasingly driven by the growing integration of electric drivetrains, advanced driver-assistance systems and connectivity features. To support these advancements, there is a rising need for complex electronic components and scalable manufacturing solutions. The transition toward electric and autonomous vehicles requires high-quality, dependable electronics such as batteries, sensors, control units and infotainment systems produced efficiently and at large scale. This evolution not only accelerates the launch of new vehicle models but also enhances cost-effectiveness, safety and overall performance, helping automakers stay competitive in a rapidly evolving global market.

The global industrial automation market was valued at approximately USD 233.8 billion, with the industrial automation & control systems sector contributing USD 206.5 billion Asia Pacific led the market, comprising about 39% of total revenue, driven by strong adoption in manufacturing hubs like China and India. Key growth factors included surging demand for industrial robots, pervasive sensor deployment and the rollout of DCS and SCADA control technologies. Advancements in AI, IoT, and 5G integration are revolutionising production processes, enabling predictive maintenance, remote monitoring and real time quality control all aimed at reducing costs and human error.

The industrial automation market is set to maintain strong momentum, driven by the rapid adoption of advanced technologies such as artificial intelligence, machine learning and next-generation control networks. This growth is further supported by increased connectivity through 5G and expanding public investments in key regions. The Electronic Manufacturing Services (EMS) industry plays a crucial role in enabling this transformation by designing and producing essential components and subsystems like sensors, PCBs, and embedded controllers that power automation technologies. By integrating cutting-edge solutions and offering end-to-end automation support including hardware, firmware, and testing. EMS providers ensure faster innovation, streamlined production and efficient deployment of smart manufacturing systems. This positions them as key enablers of the industrial automation sectors continued evolution and success.

The medical devices and healthcare sector is witnessing a strong momentum, propelled by technological innovation, rising patient expectations, and a global shift toward value-based, patient-centric care. The industry is forecasted to continue its robust growth, with global sales projected to rise by 5% annually, reaching just under USD 800 billion by 2030.¹²Key drivers include an aging population, increasing prevalence of chronic diseases, and rapid advancements in digital health technologies such as AI, robotics, clinical wearables, and remote monitoring. However, this growth is accompanied by challenges, notably regulatory complexity, quality management demands, and economic uncertainty, which require companies to be agile and compliant in an evolving landscape.

The medical device industry leverages cutting-edge technologies like brain-computer interfaces, robotics, and AI-driven automation to address healthcare system pressures, such as rising costs and staff shortages. The Electronic Manufacturing Services (EMS) industry is playing a crucial role in this transformation by enabling rapid prototyping, scalable production, and the integration of advanced electronics into medical devices. EMS providers help device manufacturers meet stringent quality and regulatory standards, accelerate time-to-market, and adapt to the increasing demand for connected, data-driven healthcare solutions.

The IoT and Robotics sectors are experiencing rapid advancement and integration within the Electronic Manufacturing Services (EMS) industry. The adoption of IoT devices and AI-powered robotics has become a cornerstone of modern EMS operations, enabling real-time data collection, predictive maintenance and automation of complex manufacturing tasks. These technologies are driving significant improvements in efficiency, precision and scalability, allowing EMS providers to optimize production lines, reduce downtime and maintain high product quality. The convergence of IoT, robotics, and AI is also facilitating the rise of smart factories, where connected systems and data-driven insights are central to operational decision-making and continuous improvement

The outlook for IoT and robotics in the EMS industry is highly positive, with advancements like edge computing, machine learning, and 5G accelerating smart manufacturing. As EMS providers adopt Industry 4.0, the focus will be on hyper-connected supply chains, autonomous decision-making, and stronger cybersecurity. This evolution will boost productivity, flexibility, and sustainability.

The power electronics and telecom sectors experienced a turbulent FY 2024, marked by supply chain disruptions, high inventory levels, and intense cost pressures, especially in markets like photovoltaics and battery energy storage systems. Despite these challenges, the global power electronics market is set for robust growth, fuelled by the rapid adoption of renewable energy, the electrification of transportation, and increasing demand for energy-efficient solutions across industrial, automotive, and telecom applications. technological advancements, particularly in silicon carbide (SiC) and gallium nitride (GaN) semiconductors, are driving higher efficiency and performance in power management for telecom infrastructure, electric vehicles, and industrial automation.

The power electronics and telecom industries are set to grow steadily, driven by the global shift toward sustainability, electrification, and digital connectivity. Advancements in technologies like SiC and GaN are enhancing performance and efficiency, while stronger supply chain coordination and faster innovation cycles are helping these sectors stay competitive and resilient in a dynamic global market.

Indias defence sector experienced significant growth, driven by a strong push for indigenous manufacturing and technological innovation under the "Make in India" initiative. Defence production reached a record H 1.27 lakh crore in FY 2023-24, and defence exports soared to an all-time high of H 23,622 crore in FY 2024-25, marking a dramatic shift from historical import dependency to self-reliance.¹³ The Electronics Manufacturing Services (EMS) industry, in particular, has played a pivotal role in supplying advanced electronics, avionics and embedded systems critical for modern defence platforms, aligning with the sectors modernization and indigenization objectives.

As a result of these strategic initiatives and investments, the Indian defence sector has become a global exporter and a hub for innovation, with benefiting from increased demand for high-quality, indigenous electronic components and systems. The sectors rapid expansion has generated employment fostered technological advancements and strengthened supply chains, positioning India as a key player in the global defence manufacturing landscape. The EMS industrys integration into defence production has not only contributed to record export figures but also enhanced the nations self-reliance and technological capabilities, setting the stage for continued growth and leadership in advanced military technologies.

Indias Electronics Manufacturing Services (EMS) sector is witnessing steady growth, driven by increasing domestic demand, expanding export opportunities. The sector is witnessing a shift beyond traditional box-build assembly to higher-value activities such as product design and PCB assembly, enabling EMS players to capture greater margins and a larger share of the value chain. The major segments driving this growth are IT hardware and lighting, with the continuation of "China plus one" policy strategy encouraging global manufacturers to diversify their supply chains into India.

Government policies played a critical role by offering incentives that lowered capital costs and attracted both domestic and foreign investment. While the sector faced challenges such as periodic component shortages and geopolitical uncertainties impacting supply chains, the overall outlook remained positive due to Indias competitive labour costs, skilled workforce and sustained infrastructure development. As the local component ecosystem matures and outsourcing to EMS providers rises, the industry is set to play a pivotal role in positioning India as a global electronics manufacturing powerhouse.

Indias fast-evolving digital landscape, driven by widespread internet usage, e-commerce and digital payments, is significantly increasing the demand for efficient EMS. Initiatives such as Digital India, Smart Cities Mission and BharatNet are further accelerating EMS deployment across public sector organisations and private enterprises seeking to digitise processes and enhance operational transparency.

Indias electronics manufacturing sector is on a strong growth trajectory, with production expected to reach USD 300 billion by 2026.¹⁴ This expansion is driving substantial requirements for EMS solutions to manage production workflows, streamline inventory management and ensure stringent quality control. The rapid establishment of manufacturing units in areas such as mobile devices, semiconductors and printed circuit board (PCB) assemblies showcase the need for advanced electronic management capabilities to achieve compliance and operational excellence.

The Governments Production-Linked Incentive (PLI) Schemes are creating large-scale investments in electronics manufacturing. Companies setting up factories are increasingly integrating EMS platforms to enable end-to-end production traceability, monitor real-time performance and optimize resource utilisation, ensuring they meet incentive criteria while maintaining high standards of efficiency.

Businesses are adopting EMS platforms infused with AI, ML and Internet of Things (IoT) technologies to drive automation and intelligence across functions. These capabilities support automated document classification, predictive maintenance of assets, real-time resource optimization and advanced analytics. By leveraging these innovations, organisations can enhance agility, improve decision-making and unlock greater operational efficiencies.

The U.S. Electronic Manufacturing Services (EMS) market is experiencing strong and sustained growth, driven by rising investments in advanced manufacturing technologies and increasing demand across key sectors such as consumer electronics, IoT, healthcare devices, and particularly automotive electronics. North America accounted for 21.5% of the global EMS market share. A major growth catalyst has beentherapidadoptionofelectricvehicles(EVs),whichrequire complex, high-tech components like battery management systems, motor controllers and infotainment units. This has prompted many OEMs to outsource to specialized EMS providers with the expertise and infrastructure to handle such sophisticated production.

To meet evolving industry needs, U.S.-based EMS firms are investing heavily in robotics, AI-powered quality control and automation technologies. These advancements are aimed at increasing production efficiency, ensuring precision, enabling miniaturization, and supporting sustainability goals. The domestic EMS market is expected to expand further, fuelled by rising demand for EV electronics, telecom infrastructure and medical devices. There is a growing shift toward high-precision, high-mix manufacturing, supported by strategic reshoring efforts, federal incentives, and private investments. This combination of technology, policy, and market forces is likely to enhance U.S. EMS capacity and increase its share in the global EMS market over the coming decade.

The global Printed Circuit Board Assembly (PCBA) market is on a strong growth trajectory. This growth is being fuelled by an ascending demand of electronics across diverse sectors, such as consumer electronics, automotive, industrial electronics, telecommunications and medical devices. The market is characterised by rapid technological advancements, Surface Mount Technology (SMT), through-hole technology and hybrid approaches enabling enhanced efficiency, miniaturisation and elevated performance. Key end-users including aerospace, defence, healthcare and telecommunications are increasingly adopting advanced PCBA solutions to support the integration of sophisticated electronic functionalities. Geographically, Asia Pacific remains the dominant region owing to its strong manufacturing base and expanding electronics industry. North America and Europe continue to exhibit steady demand bolstered by heightened innovation and R&D activities.

The global PCBA market is poised for sustained expansion, buoyed by the proliferation of smart devices, the rollout of 5G networks and the growing adoption of electric and autonomous vehicles. In addition, sustained investment in automation, IoT and AI-driven manufacturing will further enhance production efficiency and product reliability. This flow of investment is envisioned to contribute meaningfully to market performance. Heightened emphasis on sustainability and utilisation of eco-friendly materials in assembly processes is likely to shape industry trends. Despite potential challenges, such as supply chain disruptions and component shortages, the market outlook remains positive. Asia Pacific is predicted to maintain its leadership while other regions invest in advanced manufacturing capabilities to capitalise on emerging opportunities.

The Indian Printed Circuit Board (PCB) Assembly market reached an estimated value of USD 6.3 billion in 2024.¹⁵ This valuation reflects a consistent momentum of growth. This expansion was primarily directed by the surge in demand of consumer electronics, elevated adoption of PCBs in Electric Vehicles (EVs) and supportive government initiatives such as ‘Make in India and ‘Digital India. PCBs serve as the backbone for electronic device connectivity and are witnessing rising utilisation across a broad spectrum of sectors. These include the automotive, medical, aerospace and industrial electronics sectors. The market is characterized by a dominance of rigid PCBs, especially single-sided and rigid 1or 2 sided types, owing to their cost-effectiveness and widespread use in essential electronic devices.

Indias PCB Assembly market is well positioned to achieve substantial expansion, with projections indicating a rise to USD 24.7 billion by 2033, at a remarkable CAGR of 15.58% from 2025 to 2033.¹⁶ Key contributors of this growth are expected to be sustained digital transformation, rapid proliferation of IoT and smart devices and the expedited transition towards electric and hybrid vehicles. Sustained government focus on local manufacturing, reduction of bureaucratic hurdles and incentives for setting up PCB plants are expected to further strengthen the industry. Additionally, advancements in high-frequency, high-speed and miniaturised PCB technologies are expected to present new avenues for innovation, positioning India as a vital player in the global electronics supply chain.

The increasing adoption of advanced electronics in automotive (especially electric and hybrid vehicles), consumer electronics, medical devices, and industrial automation is driving robust demand for printed circuit board assemblies.

Innovations such as miniaturization, high-density interconnects (HDI), and the integration of AI and IoT capabilities are opening new avenues for product differentiation and higher-value offerings in PCB assembly.

Asia-Pacific continues to dominate global PCB assembly due to cost advantages, skilled labour and strong manufacturing infrastructure, presenting significant growth opportunities, particularly in China, India, Japan.

Global electronics brands are increasingly diversifying their supply chains beyond China, favouring India as an alternative manufacturing hub. This trend is expected to drive new investments and contract manufacturing orders into Indian PCBA facilities.

Persistent global supply chain issues, including sourcing of components and materials, can lead to production delays and increased costs, impacting timely delivery and profitability.

The trend toward smaller, more complex PCBs with higher component density increases assembly difficulty, requiring advanced machinery, skilled labour, and robust quality control, which can elevate operational costs.

As PCBs become more intricate, ensuring consistent quality and reliability becomes challenging, particularly in high-stakes sectors like automotive and medical devices, where failures can have significant consequences.

Aimtron Electronics Limited is a premier Electronics System Design and Manufacturing (ESDM) Company specialising in high-precision engineering solution for a diverse range of industries. With nearly 16 years of operational excellence and celebrating its 16th anniversary in September 2025, the Company has established itself as a trusted partner and offers a comprehensive range of solutions delivering end-to-end services from initial concept and design to Printed Circuit Board Assembly (PCBA), box build and complete system integration serving both domestic and international clients.

The Companys offerings serve a diverse spectrum of applications including battery management systems, IoT-enabled devices, gaming platforms and advanced communication equipment across different industries such as automotive, industrial automation, IoT and robotics, gaming, medical and healthcare, telecommunications, agriculture and consumer electronics.

Renowned for its quality, process-driven approach and commitment to technological innovation, the Company combines robust capabilities with a customer-centric mindset. By consistently delivering scalable and reliable electronics manufacturing solutions, the Company drives customer success and positions itself as a one-stop destination for innovative, high-performance electronic products.

Robust revenue growth, strategic expansion into high-growth sectors such as telecom, automotive EV, aerospace, defence and a rising share of box-build services are expected to bolster the growth trajectory of the Company. Further, operationalisation of its new SMT line, the elevation in mass production orders and the expanding footprint of its wholly-owned US subsidiary is envisioned to propel growth. The Companys dual presence in India and the US provides an additional competitive advantage and strategically positions it to benefit from global supply chain shifts and China+1 strategies.

*Others include Consultancy services for end-to-end solution

During the year under review, the Company continued to consistently strengthen and advance its human resource capabilities in alignment with its rapid business expansion and sectoral diversification. The Company placed notable emphasis on recruiting and developing a skilled and technically proficient workforce to support its growing operations, particularly in high-demand areas like telecom, automotive EV, aerospace and defence and AI. Significant investments were made in training and upskilling to enhance operational efficiency, particularly with the integration of advanced manufacturing technologies and AI-driven systems. The HR initiatives played a crucial role in the Companys growth and sustaining its healthy profitability metrics. As on 31st March, 2025, the Company has employed approximately 175+ employees at various levels of the organisation

The financial statements for the year ended 31st March, 2025 have been prepared as prescribed in accounting standards and there is no change in treatment of the said accounting standards. Therefore, no explanation by the management is required for the same.

The Company has strengthened its internal control and audit aspects by appointing outside agency for internal audit of certain important aspects of operations, apart from usual transactional verifications. There are adequate checks and controls to ensure compliance of various statutes.

The Management Discussion and Analysis (MDA) section often includes statements about future prospects. These statements, which address both known and unknown risks and uncertainties, can lead to significant differences between actual outcomes and the predictions made. The reports estimates rely on the Companys assumptions, which consider the most recent internal and external data. However, keep in mind that the underlying factors behind these assumptions can change over time, potentially affecting the estimates. Its essential to recognize that forward-looking statements apply only to the date they are made and reflect the Companys current intentions, beliefs, or assumptions. The Company is not obligated to revise or update these statements based on new information or future events.