TVS Electronics Ltd Management Discussions

Global Economy

The global economy is on a path of stability and resilience, driven by easing inflation, improved financial conditions, and steady consumer demand. Despite recent challenges, including supply-chain disruptions, inflation surges, and geopolitical tensions, economies worldwide have adapted, showing remarkable flexibility in navigating uncertainty. Central banks are gradually shifting towards policy normalisation, while businesses and investors continue to adjust to evolving global dynamics.

In 2024, the global economy expanded at a steady but uneven pace across regions, recording a growth rate of 3.30%. A notable trend was the slowdown in global manufacturing, particularly in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies. Although services inflation remained persistent, inflationary pressures eased in most economies. While commodity prices have stabilised, the risk of synchronised price increases remains. Growth is varying across economies, and last-mile disinflation remains sticky. As a result, central banks may chart different paths of monetary easing, creating uncertainty over future policy rates and inflation trajectories.

Indian Economy

Indias economy is projected to grow at 6.5% in 2024–25, according to the Second Advance Estimates (SAE) released by the National Statistics Office on February 28, 2025. This optimistic forecast highlights the nations robust domestic fundamentals and the effectiveness of its policy measures. These have allowed India to remain resilient amid global economic uncertainties such as trade wars and tari_ disputes. Indias consumption-driven growth model, coupled with its relatively low dependence on exports and stable financial markets, has provided a bu_er against external disruptions. Additionally, the decline in oil prices and a manageable external deficit further contribute to macroeconomic stability. The countrys growth momentum is also supported by ongoing reforms, accelerated digital transformation, and consistent infrastructure investments. These factors position India to navigate global challenges with confidence.

Amidst this uncertainty, global headline inflation is now expected to decline at a slower pace than previously anticipated. It is now projected to ease to 4.3% in 2025 and further to 3.6% in 2026. The revision reflects higher inflation estimates for advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

However, geopolitical tensions and policy uncertainties continue to pose risks. The 2025 US tariffs on electronics have had a significant impact on the global industry by raising costs and disrupting supply chains. With a 10% base tari_ on most imported electronic components and higher rates on specific Chinese products, manufacturers are facing increased input costs, squeezing profit margins and driving up consumer prices. These tariffs have accelerated the shift in manufacturing from China to countries like India and Vietnam, where tari_ exemptions make products more competitive in the US market.

(Source: Times of India)

Outlook

In the face of ongoing economic uncertainty, the world stands at a pivotal moment, where adversity can serve as a catalyst for transformation. The resilience shown by many economies under pressure proves that recovery is not only possible, but within reach, given the right combination of smart policies and forward-thinking reform. For a more balanced and inclusive global recovery, nations must unite around a shared vision. This includes fostering an open and predictable trade environment, accelerating fair and timely debt solutions, and addressing deep-seated structural challenges.

The Union Budget for 2025–26 takes a bold step forward, focussing on nine transformative areas designed to foster a balanced, inclusive, and sustainable economic future. These priorities span agriculture, manufacturing, urban development, energy security, green growth, youth empowerment, financial-sector innovation, infrastructure expansion, and ensuring benefits reach every corner of the nation. This holistic vision seeks to create an economy that is resilient, primed for future growth, and capable of withstanding global challenges.

To fuel consumer-driven growth, the Union Budget raises the income tax exemption limit, providing a boost to disposable incomes. This move is expected to drive consumer confidence, stimulate spending, and enhance overall demand in the economy, setting the stage for a robust and dynamic future.

Indias IT sector demonstrated strong resilience in FY 2024–25, growing by 5.1% to reach USD 282.6 billion in revenue. This expansion was powered by a 4.6% rise in tech exports, totalling USD 224.4 billion, alongside a 7% increase in domestic revenue, which reached USD 58 billion. The sector also saw the creation of 126,000 new jobs, bringing total employment to 5.8 million. Notably, global capability centres (GCCs) led the surge in hiring, as traditional IT firms adapted to evolving demand patterns.

While export growth moderated from the peaks of previous years, both multinational corporations (MNCs) and Indian companies contributed USD 112 billion each in export revenues. On the domestic front, IT spending saw a significant boost, with projections suggesting an 11.2% year-on-year (YoY) growth. This is likely to push the total domestic market to nearly USD 160 billion in 2025, largely driven by investments in emerging technologies such as AI, cloud computing, and cybersecurity. The industry is also experiencing a rebound in fresher recruitment, with over 1,50,000 hires expected in 2024-25, particularly in roles related to AI, data analytics, and cloud technologies. Throughout 2024, inflation in India remained above the RBIs 4% target, largely due to volatile food prices. However, by February 2025, the Consumer Price Index (CPI) inflation eased to 3.61%, falling below the target for the first time in six months, thanks to a sharp decline in food inflation. Meanwhile, the Wholesale Price Index (WPI) inflation rose slightly to 2.38%, influenced by fuel and food price increases. Rural inflation also moderated significantly in February, signalling potential easing in monetary policy and providing relief on the retail front.

(Source: Economic Survey 2024-25, Times of India, Economic Times, Reuters)

Digital India Programme

The Digital India Programme continues to make remarkable progress in 2024-25, reinforcing the countrys commitment to building a robust, inclusive, and secure digital ecosystem. With a strategic focus on expanding digital infrastructure, enhancing cybersecurity, and promoting digital inclusion, the programme plays a pivotal role in shaping Indias digital future.

One of the most significant achievements is the advancement of the BharatNet project. As of January 2025, over 2.14 lakh gram panchayats have been connected with high-speed internet, supported by nearly 6.92 lakhs kilometres of optical fibre cable laid across the country. This marks a substantial scale-up from earlier phases, with ongoing Phase III efforts aiming to integrate 5G technology and enhance last-mile connectivity in rural areas.

The rollout of 5G has been equally impressive, driving higher internet speeds and enabling access to advanced digital services even in the most remote regions. Additionally, digital public infrastructure (DPI), anchored by Aadhaar and UPI, continues to serve as a global benchmark for scalability and integration. This infrastructure is not only enabling digital inclusion and economic growth but is also being adapted internationally. Complementary platforms such as DigiLocker and open network for digital commerce (ONDC) are being scaled further to strengthen the digital economy and prepare for future demands by 2030.

Targeted initiatives are also underway to bridge the urban-rural digital divide. Schemes like PMGDISHA are enhancing digital literacy, while post offices in rural areas are being equipped to offer assisted digital services. The newly launched Bharatiya Bhasha Pustak Scheme aims to break language barriers by providing digital educational content in vernacular languages, further boosting accessibility. Moreover, significant investments are being directed towards emerging technologies. The India AI Mission has seen its budget rise to approximately

2,000 Crore, signalling a strong push for AI development. Additionally, support for semiconductor manufacturing and innovation ecosystems like Atal Tinkering Labs is being ramped up to position India as a global technology hub.

Outlook

Indias economic outlook remains cautiously optimistic in 2025-26, balancing growth aspirations against a backdrop of global uncertainties. Geopolitical tensions, trade disruptions, and potential volatility in commodity prices continue to pose external challenges. However, a stable macroeconomic environment, coupled with targeted domestic reforms, positions the country to navigate these risks with resilience.

On the domestic front, sustaining private sector investment, boosting consumer confidence, and accelerating corporate wage growth will be essential drivers of economic expansion. A recovery in rural demand—supported by a rebound in agriculture, easing food inflation, and improving household incomes—is expected to provide a strong foundation for inclusive growth.

To strengthen and extend this momentum, India must pursue structural reforms aimed at enhancing global competitiveness. Grassroots-level deregulation and a more business-friendly regulatory environment will not only stimulate entrepreneurship and innovation but also help bu_er the economy from external shocks. These efforts will be crucial in building a resilient, future-ready economy that can deliver sustained prosperity despite global headwinds.

Industry Overview

IT Sector Overview

Indias IT and business process management (BPM) sector has become a cornerstone of the countrys economic growth, significantly contributing to GDP and public welfare. As digital technologies continue to reshape industries, India finds itself at the forefront of a transformative digital era. With over 76 Crore citizens connected to the Internet and some of the most affordable data rates in the world, the country now boasts one of the largest and most inclusive digital ecosystems globally.

This digital leap has been driven by a powerful synergy between government initiatives, private sector innovation, and large-scale deployment of digital solutions. Together, these efforts have enhanced productivity, streamlined service delivery, and improved the quality of life for millions. Reflecting its sustained push for innovation, India climbed six positions in the Global Innovation Index (GII) 2024, securing the 39^th rank. This is a significant milestone for the country in the journey to becoming a global digital innovation hub.

The momentum continued in 2024-25, with the IT and BPM industry reinforcing its role as a global technology powerhouse. According to the National Association of Software and Service Companies (NASSCOM), the sector is projected to generate USD 283 billion in total revenue—including hardware—marking a 5.1% YoY growth and adding nearly USD 14 billion over 2023-24. Exports remain a key growth engine, with revenue expected to reach USD 224 billion in 2024-25, up 4.6% from the previous year. Simultaneously, domestic demand is gaining strength, with the homegrown technology segment projected to grow by 7.0% YoY, reaching USD 58.2 billion.

Riding on improved market sentiment, the sector has also seen a resurgence in hiring. Net employment increased by 1,26,000 in 2024-25, bringing the total workforce to 5.8 million, which is a 2.2% rise over 2023-24. Geographically and sector-wise, the US and the banking, financial services, and insurance (BFSI) domain remain primary growth drivers. Additionally, emerging momentum in the Asia-Pacific region, as well as in the telecom, retail, and healthcare sectors, is helping diversify and expand Indias global digital footprint.

Indias IT services sector has largely remained unaffected by recent US tari_ hikes. This is largely driven by strong US-India collaboration and the growing demand for cutting-edge technologies such as AI, cybersecurity, and enterprise solutions. However, experts warn that reciprocal tariffs could put pressure on industries heavily dependent on IT spending, potentially leading businesses to focus on cost optimisation and increased automation to maintain efficiency.

(Source: Business Line, Economic Times)

IT Peripherals Market

The Indian IT peripherals market plays a pivotal role in the countrys digital transformation, supporting critical sectors such as education, banking, manufacturing, and retail. As India rapidly embraces digitalisation, the demand for peripherals like keyboards, mice, printers, scanners, and gaming accessories has become essential for both personal and professional computing environments. Currently, the Indian computer peripherals market is experiencing strong growth, driven by the increasing adoption of PCs and laptops across both urban and rural regions, coupled with rising disposable incomes. With over 25 Crore internet users and a 24% increase in laptop and desktop adoption, India has become one of the largest global markets for connected devices. This widespread adoption continues to drive demand for a wide array of peripherals, creating significant opportunities for manufacturers and vendors. The IT peripherals market is expected to exhibit a CAGR of 7.4% from 2025 to 2031, fuelled by government initiatives like Digital India. These initiatives promote digital payments and e-commerce, further boosting the online sales of IT peripherals. Demand is particularly strong across industries such as banking, finance, telecom, education, and retail, while the rising popularity of gaming and related accessories among the youth adds additional momentum. Despite this growth, the high cost of advanced peripherals can be a barrier for individuals and small businesses, limiting the markets reach in some segments. However, the industry remains resilient, driven by continuous innovation and rapid product obsolescence, ensuring ongoing demand as customers seek the latest technological advancements.

(Source: IBEF)

Growth Drivers

Domestic Market Growth and Digital Economy Expansion	Expansion into Tier 2 Cities and New Talent Hubs	Export Demand and Global Market Integration
Rising domestic technology spending and widespread digital adoption—fuelled by one of the worlds largest internet user bases and some of the lowest	A clear shift is underway in tech talent recruitment and IT investments, extending beyond traditional metropolitan centres to Tier 2 cities across India. These	The Indian IT industry has established itself as a leading exporter of IT services, generating substantial revenue from key markets such as North America,
data costs—have significantly propelled the growth of Indias domestic IT market. The IT sector plays a pivotal role in powering the broader digital economy, serving as a foundation for thriving industries such as e-commerce, fintech, and digital media, and contributing meaningfully to the countrys overall economic expansion.	emerging hubs are expanding the available talent pool, lowering operational costs, and fostering inclusive growth. This geographic diversification is playing a crucial role in sustaining the IT sectors momentum and enhancing its nationwide footprint.	Europe, and Asia. This export strength has made a significant contribution to the countrys foreign exchange earnings. Indias appeal lies in its cost-e_ective solutions, robust IT infrastructure, and skilled talent pool. This makes the country a preferred destination for global companies seeking to outsource software development, technical support, and other IT functions.
Digital Transformation and Emerging Technologies	Increasing Demand for Cybersecurity Solutions	Innovation and Startup Ecosystem
The rapid pace of digital transformation across sectors such as finance, healthcare, and agriculture has significantly increased the demand for IT solutions. At the forefront of this shift are emerging technologies such as AI, machine learning (ML), blockchain, big data analytics, the Internet of Things (IoT), and cloud computing. These technologies are attracting robust investments and fostering innovative solutions, thereby opening up new avenues for growth.	The widespread adoption of digital technologies has led to an increased demand for sophisticated cybersecurity solutions to combat the rising threat landscape. At the same time, the growing importance of data science and analytics across industries is fuelling a surge in demand for skilled professionals in these fields. Together, these areas have emerged as critical growth engines for the IT sector, shaping its future trajectory and resilience.	The emergence of startups and innovation hubs centred around next-generation technologies has significantly broadened the scope and capabilities of Indias IT sector. These dynamic ecosystems are driving innovation, fostering agility, and accelerating the development of cutting-edge solutions, further strengthening the industrys global competitiveness and impact.
Skilled Workforce and
Talent Pool
India boasts a vast, highly skilled, and English-speaking talent pool, all of which are key drivers behind its emergence as a global hub for IT services, software development, and business process outsourcing (BPO). To maintain its competitive edge and fuel continued growth, the industry is increasingly investing in upskilling initiatives, particularly in high-demand domains like AI, data science, and cybersecurity.

Consumer Electronics Industry

The Indian consumer electronics market was valued at USD 80.8 billion in 2024 and is projected to reach USD 149.1 billion by 2033, at a CAGR of 6.10% during the forecast period (2024–2033). This growth is being driven by a combination of rising disposable incomes, a growing youth demographic, increasing internet penetration, evolving consumer preferences, and rapid technological advancements.

As consumer needs become more sophisticated, the dynamics of the Indian consumer electronics industry are shifting swiftly. A_ordability and product quality have become critical differentiators, as consumers increasingly seek value-for-money devices that deliver reliable performance and durability. An expanding middle class and improving economic conditions have further fuelled the demand for advanced computing and smart devices. In a hyper-connected digital era, consumers are more discerning than ever. A survey by Custom Market Insights reveals that 95% of buyers consult online reviews before making a purchase, and 58% are willing to pay a premium for products from well-reviewed brands. This highlights the growing importance of quality and trust in purchasing decisions. To meet these expectations, companies are focussing on delivering feature-rich, competitively priced products that strike the right balance between cost and performance. This approach is expected to significantly contribute to market expansion.

The consumer electronics landscape is undergoing a transformation, driven by the integration of emerging technologies such as AI, the Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), and remote access capabilities. This shift is further accelerated by advancements in microcontrollers and enhanced personalisation features. These innovations are particularly appealing to Indias tech-savvy, working-age population, further fuelling the adoption and growth of consumer electronics across the country.

Bridging the Digital Divide

A major focus of the budget is on expanding digital access, especially in rural areas where internet usage remains limited compared to urban centres. Under the BharatNet project, the government plans to extend broadband connectivity to all government secondary schools and primary health centres in rural regions. Additionally, post offices will be used to deliver assisted digital services, helping to bridge the urban-rural digital divide.

Promoting Innovation and Research

To enable a culture of innovation, the government plans to establish 50,000 Atal Tinkering Labs in government schools over the next five years. These labs will help nurture scientific thinking and entrepreneurship among students. In addition, the budget provides for 10,000 PM Research Fellowships to support technological research at leading institutions like IITs and IISs.

Boosting Skill Development and Education

The budget allocates funding for the creation of five National Centres of Excellence for Skilling. This will be established in partnership with global organisations to ensure that the youth are equipped with the skills needed for the technology-driven economy. Additionally, the budget supports apprenticeship-linked education and digital learning initiatives aligned with the goals of the National Education Policy 2020, aiming to prepare the workforce for the demands of the future.

Encouraging Private Sector-Led R&D

To drive industry-led innovation, the budget allocates 20,000 Crore for private sector-driven research, development, and innovation initiatives. This move is expected to spur collaboration between businesses and research institutions, accelerating technological advancements across various sectors.

Expanding AI Integration

The budget has significantly boosted funding for the India AI Mission, increasing the allocation from

173 Crore to 2,000 Crore. An additional 500 Crore has been set aside to create a Centre of Excellence in AI for Education, aimed at integrating AI into educational frameworks, skill development programmes, and learning processes to enhance digital education.

Strengthening Semiconductor and Deep Tech Ecosystems

To promote domestic manufacturing of advanced technologies, the government has increased the allocation for the Modified Programme for the Development of Semiconductors and Display Manufacturing Ecosystem from

2,500 Crore to 3,900 Crore. The production linked incentive (PLI) scheme has also seen a boost, with its allocation rising from 5,777 Crore to 9,000 Crore. Additionally, a Deep Tech Fund of Funds is proposed to support startups in emerging technology sectors. The budget also introduces exemptions on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc to encourage manufacturing.

Banking and Finance Industry

Indias banking sector is a key driver of the nations economic development, contributing significantly to capital mobilisation, credit access, and financial inclusion. Despite challenges such as regulatory changes, rising operational costs, and increasing competition from fintech players, the sector is actively navigating these issues. It is also embracing opportunities through digital innovation, structural reforms, and evolving customer needs. Indias banking landscape is undergoing a transformation, marked by the global success of the Unified Payments Interface (UPI), rising fintech investments, and inclusive financial initiatives such as the Pradhan Mantri Jan Dhan Yojana. These developments are laying the groundwork for a more inclusive, tech-driven, and resilient financial ecosystem. The RBI has afirmed that the countrys banking sector remains well-capitalised and well-regulated, contributing to its resilience. The financial and economic conditions in India surpass those of many other nations, reinforcing the strength and stability of the Indian banking system. Studies on credit, market, and liquidity risks indicate that Indian banks have shown remarkable resilience, successfully weathering global financial downturns.

In recent years, the Indian banking industry has witnessed the introduction of innovative banking models, including payments banks and small finance banks. These models have been instrumental in increasing the reach of banking services, especially in rural and underserved areas. Government initiatives like the Pradhan Mantri Jan Dhan Yojana, aimed at providing financial services to the unbanked, and the establishment of Post Payment Banks have significantly expanded banking access across a wider segment of the population.

(Source: IBEF)

Retail Industry

Indias retail industry has rapidly become one of the most vibrant and fast-growing sectors globally. It contributes over 10% to the countrys GDP and accounts for 8% of employment. The country stands as the worlds fifth-largest retail destination, cementing its position as a major player on the global retail stage. India ranks 63^rd in the World Banks Doing Business 2023 report, reflecting the countrys increasing attractiveness as a business hub.

The retail sector in India is undergoing significant growth, driven not only by the expansion of retail in major cities and metropolitan areas but also by an increasing presence in smaller cities and towns. Other factors include healthy economic progress, a changing demographic profile, rising disposable incomes, urbanisation, and evolving consumer preferences. This has particularly impacted the organised retail market, leading to more structured shopping experiences and a shift towards modern retail formats. The Indian Government has played a crucial role in facilitating this growth by implementing various regulations, rules, and policies aimed at improving the business climate. E_orts to make it easier for foreign companies to set up fully owned subsidiaries have helped enhance Indias appeal as a retail investment destination. These measures include easing FDI policies and simplifying procedures for market entry, thereby making India a more attractive option for global retailers and businesses.

(Source: IBEF)

Shipping and Logistics Industry

The Indian shipping and logistics industry is a critical pillar of the nations economy, projected to reach a market size of USD 380 billion by 2025. This sector serves as the backbone of trade and commerce, playing a pivotal role in facilitating domestic and international trade, supporting overall economic growth, and enabling large-scale infrastructure development across the country.

In recent years, the industry has been undergoing a significant transformation, propelled by technological advancements, digital integration, and a growing emphasis on sustainability. Innovations such as real-time tracking systems, automation, and AI-powered logistics solutions are enhancing operational efficiency, reducing transit times, and improving supply chain transparency.

Additionally, the governments continued investments in infrastructure, such as dedicated freight corridors, modernised ports, and multimodal transport networks, are further streamlining logistics and boosting trade connectivity. With increased focus on green logistics and sustainable practices, the sector is aligning with global environmental goals while striving to reduce its carbon footprint.

(Source: Times of India)

Government

Indian public sector undertakings (PSUs) hold a crucial place in the countrys economic landscape, significantly contributing to infrastructure development, employment generation, and social welfare. These government-owned enterprises operate across critical sectors such as energy, steel, mining, telecommunications, and transportation, ensuring strategic control and the delivery of essential services to citizens.

PSUs also play a key role in promoting balanced regional development, often setting up operations in remote and underdeveloped areas, thereby aiding in inclusive growth. Their contributions extend beyond commercial objectives, focussing on long-term national interests, public service delivery, and the creation of economic opportunities across the country.

In line with ongoing economic reforms and to enhance efficiency and competitiveness, the Government of India continues to pursue a strategic disinvestment policy. In the Union Budget 2025-26, it has set a disinvestment target of

47,000 Crore. This move is part of the broader initiative to restructure and modernise PSUs, encourage private sector participation, and unlock the value of public assets while ensuring fiscal consolidation.

Electronics Manufacturing Services

Indias electronics manufacturing industry is experiencing a significant transformation, propelled by a combination of strategic government policies, growing domestic consumption, and a strong push towards self-reliance under the Aatmanirbhar Bharat initiative. The government envisions India as a global hub for electronics production, focussing on enhancing local manufacturing capabilities through innovation, infrastructure development, and active collaboration with the private sector.

In 2023, Indias electronics production reached USD 102 billion, reflecting robust industry momentum and increasing investor confidence. This growth has been underpinned by a rising demand for components and sub-assemblies, which stood at USD 45.5 billion in 2023. As the sector continues to scale, this demand is projected to surge dramatically to USD 240 billion by 2030, in alignment with Indias ambitious electronics production targets for the same year. This upward trajectory is being supported by various government initiatives such as the PLI schemes, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the development of Electronics Manufacturing Clusters (EMCs). These efforts aim to strengthen the domestic electronics ecosystem, reduce import dependency, and position India as a competitive player in the global value chain.

Green Energy – Solar

The Indian solar industry is undergoing a phase of rapid expansion, fuelled by progressive government policies, declining technology costs, and a strong push towards sustainable energy solutions. As one of the worlds leading solar markets, India boasts a significant installed capacity and continues to set ambitious targets to scale up renewable energy generation.

This growth is being actively supported by various central and state-level initiatives such as the National Solar Mission, PLI schemes for solar module manufacturing, and Green Energy Corridors. These policies have attracted substantial domestic and foreign investments, reinforcing Indias position as a global hub for solar energy production and innovation.

Indias energy demand is projected to rise faster than any other country in the coming decades, owing to its vast population and strong economic growth trajectory. To ensure this increasing demand is met sustainably, the country is strategically shifting towards low-carbon, renewable sources, with solar energy at the forefront of this transition.

A landmark moment came with Indias pledge to achieve net-zero carbon emissions by 2070 and meet 50% of its electricity requirements from renewable energy sources by 2030. These commitments not only reflect Indias dedication to global climate goals but also its recognition of the economic and environmental advantages of clean energy.

With continuous innovation, supportive policy frameworks, and a growing investor base, the Indian solar sector is poised to play a transformative role in shaping the countrys sustainable energy future. It is also set to contribute meaningfully to the global fight against climate change.

Green Energy – Electric Vehicles

Indias electric vehicle (EV) sector is on an accelerated growth trajectory, propelled by supportive government policies, increasing environmental awareness, and rapid technological advancements. Key initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme are central to Indias strategy to promote cleaner mobility solutions, reduce carbon emissions, and reshape the countrys transportation landscape with sustainability and innovation at its core.

According to Mordor Intelligence, Indias EV market is projected to grow from USD 54.41 billion in 2025 to USD 110.7 billion by 2029, registering an impressive CAGR of 19.44% during the forecast period (2025–2029). This growth reflects a strong consumer shift towards electric mobility, driven by rising fuel prices, lower operating costs of EVs, and expanding charging infrastructure.

The sector is also witnessing notable advancements in supply chain localisation and manufacturing efficiency. Leading companies are increasingly investing in automation and advanced manufacturing technologies to boost productivity and maintain stringent quality standards. There is a growing emphasis on sustainable production practices, including the use of renewable energy in manufacturing facilities and the integration of circular economy principles, such as battery recycling and eco-friendly materials. Additionally, the rise of specialised EV component manufacturers and suppliers is contributing to the creation of a robust domestic supply chain ecosystem, which is crucial for reducing import dependency and enhancing the sectors self-reliance. This evolving ecosystem is laying the foundation for long-term growth there by positioning India as a potential global hub for electric vehicle innovation and manufacturing.

Company Overview

TVS Electronics Limited (referred to as ‘TVS-E or ‘the Company), a prominent name in the IT peripherals and consumer electronics sectors, has been a trailblazer since its inception in 1986. Over the years, the Company has built a diverse portfolio spanning a wide array of IT products and solutions. Today, TVS-E stands strong in two core business domains: product and solution offerings and customer support services.

With a comprehensive approach to lifecycle management, TVS-E covers everything from product design and manufacturing to customer support, warranty services, and end-of-life management. This end-to-end service model ensures that customers experience seamless, reliable support at every stage of their journey.

The Products & Solutions Group (PSG) at TVS-E is at the forefront of innovation, designing, manufacturing, assembling, and marketing a broad spectrum of products. Their offerings are categorised as (a). Input devices: Mechanical & membrane keyboards, Optical mouse, 1D & 2D Barcode scanners and document scanners. (b). Computing devices: Point-of-sale – Desktop & handheld POS, Handheld computer, tablet and electronic cash register. (c). Validation devices: Cash counters, Fingerprint recognition devices – Keyboard, mobile printer, tablet and handheld devices. (d). Output devices: Impact printer, thermal receipt printer, label & barcode printer, passbook printer and consumables – paper rolls, ribbon and print head.

The Customer Support Services (CSS) division extends beyond typical customer service, providing essential solutions for both OEMs and end-users. This segment offers a wide range of services such as break-fix solutions, repair engineering, installation support, product demos, protection plans, IT infrastructure management, remote technical assistance, call centre operations, green energy solutions, and e-waste management.

In addition to product and service innovations, the

Company excels in EMS. This includes end-to-end solutions such as product design and development, manufacturing, sourcing, Printed Circuit Board Assembly (PCBA), box build, testing, logistics, and aftersales support.

TVS-Es commitment to innovation is evident in its continuous investment in cutting-edge technologies and infrastructure. With a strong distribution network that includes over 4,000+ sales partners, 540+ service partners, and 190+ walk-in stores, the Company is well-positioned to serve customers across India, covering more than 19,500 postal codes. Through its customer-centric approach and dedication to excellence, it ensures an unparalleled experience for users and businesses alike.

Business Segments

Products & Solutions Group (PSG)

TVS-E offers a range of products across four key categories within this vertical:

Retail Hardware

Providing solutions for invoice and bill printing, inventory and sales management, tax/GST reconciliation, and payment processing, along with the retail billing software, TVS E-Pay.

Banking Solutions

Specialising in passbook printing, ledger printing, cash counting, and demand draft printing.

Government Services

Providing ticketing, documentation/registration, and printing services for India Post receipts.

Shipping & Logistics

Offering solutions for tracking and tracing, inventory management, and label printing.

TVS-E carries out its manufacturing and assembly operations at its state-of-the-art facility in Tumakuru, with a focus on strengthening its product management team, engineering capabilities, and end-to-end solutions portfolio. The Company is determined to carve out a unique space in the industry by offering bundled product and solution packages that meet the specific needs of its clientele. Over time, its product range has continually evolved with the ever-changing demands of the market.

The surge in consumer electronics, fuelled by rising disposable incomes, improved purchasing power, and an abundance of choices from various manufacturers, offers an optimistic outlook for growth in this sector. To optimise cost efficiency and support the governments ‘Make in India initiative, TVS-E has taken significant steps to reduce reliance on imports, including sourcing materials from domestic suppliers and pursuing backward integration strategies.

In recent years, the Company has expanded its portfolio to cater to a broader array of customer requirements. It has launched innovative products such as Touch display monitors, 2D embedded barcode scanners, cash counting machines, high-speed AIO receipt printers, Electronic cash registers, Self-checkout kiosks and Make in India touch POS machines.

Looking ahead, TVS-E envisions transforming into a holistic single-point solution provider, offering comprehensive and seamless solutions to its customers under one roof. By harnessing cutting-edge technology, the Company aims to maintain its leadership in industry advancements and further strengthen its customer-focussed approach, delivering highly customised solutions tailored to individual client needs.

In terms of distribution, TVS-E will continue to leverage its strong network of traditional distributor-led channels while expanding its reach through AIDC partner channels, addressing a variety of market demands with specialised hardware solutions. Moreover, the Company is embracing a direct-to-consumer (D2C) strategy, aiming to enhance its presence in key retail accounts nationwide and enable deeper customer engagement. Through strategic partnerships and a focus on automation in identification and data capture, TVS-E is poised to drive innovation, expand its product offerings, and meet the evolving needs of its customers in the years to come.

Growth Drivers

Continued focus on expanding the product and solutions portfolio to cater to a diverse range of customer needs.

Strengthened presence in D2C retail by strategically engaging with the top 100 accounts and forming key partnerships.

Transitioned into a Single-point Solutions Provider with end-to-end solution offerings like billing hardware and software, AI-powered video analytics, terminal management, and IoT-ready retail solutions.

Entered the AIDC market with industrial-grade Mobile Computers and track-and-trace solutions, redefining logistics and manufacturing efficiency.

Strategic brand positioning, supported by deep industry expertise, driving expansion into new market segments. Rising trend of digitalisation, leading to a significant surge in demand for POS systems and billing software solutions.

Growing appetite for bundled solutions, enhancing the Companys product offerings and meeting the increasing demand.

Robust and diverse distribution network, coupled with a dedicated internal sales team, ensuring broader market penetration.

Strong commitment to the ‘Make in India initiative, focussing on local production to reduce dependency on imported goods through backward integration.

Leveraged our ‘Make in India portfolio to lead in Government and BFSI segments, enabling national progress and sustainable profitability.

Rise of e-commerce which is fuelling growth in online shopping and increasing demand for automation and digital solutions in products.

The Engineering Development Centre in Bengaluru plays a critical role in supporting new product design and introduction, enabling faster innovation cycles and improved product competitiveness, sustenance engineering and value engineering for our existing products and solutions.

Customer Support Services (CSS)

Within its service vertical, TVS-E offers a comprehensive suite of solutions across four core product categories: Field Support Services (FSS) Infrastructure Management Services (IMS) Solar and Green Energy Services Electronics Manufacturing Service Repair and Refurbishing Management Services (RMS) E-Auction and E-Waste Management TVS Electronics is redefining service excellence, setting new industry standards in Break-Fix support through its robust Field Support Services (FSS). With a strong legacy of reliability and innovation, the Company delivers comprehensive lifecycle support for a wide array of IT and Payment (Banking) devices — from seamless installation to swift break-fix solutions. At the heart of this offering is the proprietary ServiceTec Digital Platform (SDP) — a state-of-the-art system that leverages intelligent call scheduling, stringent compliance mechanisms, and a customer-first approach to deliver unmatched service efficiency and experience.

Under its Infrastructure Managed Services (IMS) portfolio, TVS Electronics delivers comprehensive support for Enterprise IT Infrastructure, spanning Workplace Services, Data Centre & Cloud, Network Management, and Cybersecurity. At the core of this capability is a Cognitive AIOps platform — purpose-built to help enterprises transition from reactive to proactive IT infrastructure management. Designed with an AI-first approach, the platform prioritises User Experience, Reliability, and Extreme Automation, empowering organisations to unlock intelligent, seamless, and future-ready IT operations. Recognising the growing momentum in electric mobility and renewable energy, TVS- E is strategically aligned to seize these emerging opportunities. Its extensive network, longstanding industry partnerships, and strong brand trust position it well for future growth.

In 2024-25, the Company expanded its service footprint to cover 650 districts, up from 640 in the previous year. Its reach now extends across 19,500+ postal codes, underscoring its ability to serve a vast and diverse customer base. Looking ahead, the Company is targeting expansion to 670 districts in 2025-26, further cementing its national presence.

With its dependable service record, strategic foresight, and customer-first approach, TVS Electronics continues to bridge the gap between brands and end-users. This is more so in the post-warranty product space, reinforcing its leadership in Indias service ecosystem.

Growth Drivers

TVS-E brings deep domain knowledge across multiple product lines, enabling efficient management of customer support and end-of-life disposal services. The Companys CSS vertical is poised for growth, particularly in the EV and solar energy space, with a focus on O&M, EV charging infrastructure, and battery swapping services.

TVS-E aims to be a full-spectrum aftersales lifecycle service provider by integrating brand partners, service networks, call centres, logistics, and spare parts management through a unified platform.

The Companys proprietary service platform ensures seamless coordination and real-time tracking of service operations, delivering operational efficiency and service excellence.

TVS-E delivers consistent, high-quality, and personalised customer interactions by leveraging cutting-edge CRM systems powered by AI and ML. With Indias accelerating focus on solar and renewable energy, TVS-E is well-positioned to broaden its service offerings and tap into new growth opportunities within the green energy sector.

The Companys Green Energy Business Unit (GEBU) is dedicated to facilitating the transition to more sustainable and energy-e_cient practices. Its services include expert consultancy for solar energy projects, robust operation and maintenance solutions, and the development of EV charging and battery swapping infrastructure. GEBU ensures the efficient functioning and consistent energy generation of solar systems while also enabling the development of public EV charging stations. Currently, the unit provides consultancy for solar projects in Karnataka with capacities of 76 MWp and 211 MWp, while managing operation and maintenance services for a cumulative 1,000+ MWp of solar capacity across India.

TVS-E has established itself as a leading provider of comprehensive Electronics Manufacturing Services (EMS). The Company offers end-to-end solutions encompassing product design, development, sourcing, manufacturing, PCBA, box build, testing, logistics, and aftersales support. Strengthening its capabilities, the Company has launched a state-of-the-art EMS facility in Tumakuru, Karnataka, located near Bengaluru.

This advanced facility features a cutting-edge Surface Mount Technology (SMT) line, showcasing TVS-Es commitment to innovation and next-generation manufacturing. With a strong focus on customer satisfaction, the Tumakuru unit delivers a fully integrated ecosystem that includes robust supply chain management, precision PCB assembly, meticulous product testing, and seamless box build services. By combining technological excellence with a customer-first approach, TVS-E is well-positioned to meet diverse manufacturing needs across both domestic and global markets.

The Company also operates Auction India, a dedicated online platform designed for surplus asset management. Tailored for B2B clients, this platform streamlines the disposal of excess inventory, scrap, and used machinery through a transparent, competitive bidding process, ensuring optimal value discovery.

In the RMS domain, TVS-E offers advanced repair capabilities for critical components such as PCBs and display panels. It also provides product refurbishment services tailored for the secondary market, contributing to sustainability and extended product life cycles.

Growth Drivers - EMS

Expansion into power electronics leveraging existing relationships with solar customers.

Diversified industry focus, including industrial electronics, consumer electronics, telecom, IT Peripherals, automotive, and EV.

Integrated EMS capabilities enabling end-to-end services from design to box build, logistics and after-sales services.

Growth Drivers - Repair Solutions

Technical capability for repairing complex PCBA assemblies, including motherboards, enhances growth opportunities. EV charger repair, along with manufacturing, provides added value to customers. Display repair in a clean room environment is driving growth for TVS-E.

Growth Drivers - E-auction

To ensure better price realisation and transparency, most material disposals are now transitioning from offine to online mode. Auction India is additionally focussing on salvage and secondary steel disposal. Due to government regulations, e-waste disposal will transition to online mode, providing growth opportunities.

Financial Overview

During 2024–25, TVS-E reported a total revenue of 430 Crore, marking a 17% YoY growth compared to 2023–24. Revenue from the ‘Products and Solutions segment rose by a 15% to 307 Crore, while the CSS segment also rose by 26%, amounting to 123 Crore.

While the Company experienced margin compression at the EBIT level, this was primarily due to planned increases in depreciation and workforce costs, aligned with its strategic growth agenda. Key investments during the year included: Strengthening engineering and R&D teams.

Scaling up retail operations.

Laying the groundwork for EMS, infrastructure management services and green energy initiatives. Expanding outreach through alternate go-to-market channels.

Key Ratios
Ratios	2024-25	2023-24
Current Ratio	1.18	1.37
Debt-Equity Ratio (X)	0.46	0.41
Operating Profit Margin (%)	(0.23)	0.35
Net Profit Margin (%)	(0.88)	0.07
Return on Net Worth (%)	(4.08)	0.27
Debtors Turnover Ratio (X)	6.39	6.70
Inventory Turnover Ratio (X)	3.63	3.23
Interest Coverage Ratio	2.63	6.20

Risk Management

TVS-E recognises that effective risk management is essential for ensuring long-term sustainability and resilience. As part of its strategic planning framework, the Company adopts a proactive and structured approach to identifying, assessing, and mitigating potential risks that could impact its business operations or objectives.

To strengthen its governance and oversight, the Risk Management Committee plays a central role in monitoring risk exposure and implementing mitigation strategies. This committee reports directly to the Board of Directors—the apex body in the Companys corporate governance structure—ensuring that risk management remains a key priority at the highest level of decision-making.

By embedding risk management into its organisational fabric, TVS-E is well-positioned to anticipate and respond to emerging threats while safeguarding its long-term interests. In 2024–25, the Company successfully identified and addressed several key risks.

Risk	Impact	Mitigation
	The Companys significant dependence on exports from neighbouring countries poses	TVS-E maintains a rigorous and ongoing monitoring process to address potential risks. In line with this, the Company proactively tackles the issue by prioritising
Import Risk	a potential risk to operational continuity in the event of trade disruptions.	the substitution of materials previously sourced from neighbouring countries, with a strong focus on the ‘Make in India initiative. This strategy has been supported through measures such as backward integration and the exploration of alternative domestic suppliers.
Raw Material Risk	TVS-Es profitability might be impacted by rising raw material costs.	TVS-E has experienced the effects of fluctuating crude and steel prices, which have directly influenced raw material costs. However, the Company has successfully enhanced cost efficiency by reducing reliance on imports, implementing backward integration strategies, and setting up in-house production capabilities for materials.
Cybersecurity Risk	Network failures and data breaches pose a substantial risk to the Companys operations, potentially leading to disruptions and security vulnerabilities.	TVS-Es strong intrusion prevention system, along with its all-encompassing risk management framework, provides excellent protection against cybersecurity threats. Furthermore, the Company has secured adequate insurance coverage for this risk.
Technology Risk	TVS-Es inability to stay current with evolving technologies and emerging trends could negatively impact the business.	Recognising the ever-changing nature of the industry, TVS-E consistently prioritises investments in cutting-edge technologies. This commitment enables the Company to deliver products that surpass current market standards and sustain its leadership in innovation.

TVS-E Digital

As digital becomes central to business execution, our in-house platform continues to scale as a key enabler across all business units—from products to services to manufacturing.

Our digital platform began as a unique solution for electronics repair services and has expanded into IT computing and banking, enabling rapid, low-cost onboarding and nationwide partner connectivity. New MES features provide OEMs with real-time insights into manufacturing processes, quality, and programme management.

Bespoke digital solutions integrate product SKUs into customer infrastructure, positioning the Company as a solutions partner rather than just a hardware provider.

The platform is uniquely designed to work as a unified digital backbone across all BUs or as independent, stand-alone systems tailored to each BUs specific needs.

Corporate Social Responsibility

TVS-E has long recognised the importance of corporate social responsibility (CSR), embedding it as a fundamental aspect of its organisational values and culture. The Company consistently demonstrates a strong commitment to making a positive impact on society, integrating social, environmental, and ethical responsibilities into its business operations. Through various CSR initiatives, TVS-E actively contributes to community development, sustainability, and inclusive growth, reflecting its belief that long-term business success is deeply intertwined with the well-being of the communities it serves.

The Companys initiatives centres around education, thereby enabling communities to achieve success. VIPASSANA is an afterschool programme in Chennai, focussed on children and led by marginalised women teachers. This initiative promotes literacy and holistic development, empowering underprivileged children to become changemakers in their communities. Partnering with the Shraddha Maanu Foundation, TVS-E aims to foster educational growth and personal development among these children.

The Company partnered with the Akshaya Patra Foundation to sponsor wholesome mid-day meals for 15 children from government schools in Puducherry. TVS-E believes that nourishment is more than a necessity but a foundation for learning and growth. This initiative reflects their deep commitment to nurturing childrens academic success through proper nutrition and combating chronic undernourishment and malnutrition. By ensuring these children receive a healthy meal each day, TVS-E contributes to their educational and overall well-being.

Under the Student Adoption Scheme at Siddha Ganga Mutt, the Company has adopted 201 students from Siddha Ganga Mutt in Tumakuru. Additionally, TVS-E has extended scholarships to four children, further contributing to educational endeavours. These initiatives exemplify TVS-Es commitment to promoting education and making a meaningful impact on the lives of young individuals.

Human Resources

TVS-E recognises the immense value of its workforce and is deeply committed to enabling an environment of inclusive growth and development. The Company nurtures a diverse talent pool by offering competitive, industry-aligned compensation packages that support merit-based career progression. These are complemented by progressive HR policies that prioritise employee well-being and professional success.

The organisational culture at TVS-E is built on the core values of integrity, collaboration, innovation, and customer centricity—principles upheld and modelled by its leadership. A strong emphasis is placed on teamwork, knowledge sharing, and continuous motivation, creating a collaborative and empowering work environment. Employees are encouraged to upgrade their skills, embrace challenges, and drive innovation, contributing to both personal and organisational growth.

To ensure open and transparent communication, the Company has implemented structured engagement mechanisms such as regular surveys, town hall meetings, and an open-door policy. These initiatives help maintain a strong feedback loop between employees and management on a monthly, quarterly, and annual basis, ensuring that every voice is heard and valued.

TVS-E also places high importance on recognising and rewarding employee contributions, thereby fostering a sense of belonging, motivation, and loyalty. As of March 31, 2025, the Company employed 948 individuals.

Internal Control Systems and their Adequacy

TVS-E has established a robust internal financial control system that supports accurate and reliable financial reporting. Throughout 2024–25, the Company maintained effective operations in alignment with its defined internal control standards. These standards incorporate the key elements of internal control as prescribed in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. All material aspects of the Companys internal control framework remained strong and effective during the year.

Cautionary Statement

Certain statements in the Management Discussion and Analysis may be forward-looking in nature within the meaning of applicable securities laws and regulations. Actual results may differ materially from those projected or implied. These statements refer to the Companys growth strategy, financial results, product potential, and development programmes based on certain assumptions and expectations of future events. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements based on subsequent developments or information of events.