Polymatech Electronics aims to achieve $2.5 billion (approximately Rs 20,000 crore) in revenue by FY26, driven by its expanded production capacity, CEO and Managing Director Mr Eswara Rao Nandam revealed in an interaction with Financial Express.
The company is banking on several key factors to drive its revenue growth, including the rising demand for energy-efficient lighting solutions such as LEDs in sectors like automotive, consumer electronics, and infrastructure. Additionally, the company is seeing increased demand for semiconductor solutions in medical applications and horticulture.
Current Financial Health Of Polymatech Electronics
The company is in a robust financial position even before its planned expansion, as evidenced by the following factors.
- The company has a robust order book totaling Rs. 7,000 crores. All these orders are for exports and are scheduled to be executed over the next two years.
- In FY24, the company’s revenue surged by 85% year-on-year, reaching Rs. 1,200 crores.
- During the same period, net profit increased by 64%, amounting to Rs. 275 crores.
- The company has a current capacity of 2 billion chips.
Polymatech Electronics Targets For Expansion
Polymatech charts course to $2.5 billion in revenue by FY26 through the below strategic plan:
- Capacity Expansion: New machinery for ingot manufacturing and wafer fabrication will increase chip production capacity to 10 billion chips by next year.
- Projected Efficiency: They anticipate achieving 50-60% efficiency translating to a production output of 5-6 billion chips annually.
- Revenue Projection: Estimating revenue of $0.5-0.6 per chip from high-end products.
- Targeted Revenue: The company aims to achieve a $2.5 billion revenue milestone by March 2026.
Expansion Plans and Global Impact
Polymatech specializes in opto-semiconductors and compound semiconductors. These are essential for energy-efficient electronics and high-speed data transmission. Traditionally the focus was on chip packaging and supply for various applications. It is now expanding into ingot manufacturing and wafer fabrication starting this year.
They initially targeted to manufacture Sapphire ingots required for LED production. Mr Nandam said, “We will be a fully integrated fab-to-floor company by next year. We will also fabricate silicon and silicon carbide wafers so that whoever comes to India, can supply wafers to them”.
Polymatech is solidifying India as its manufacturing hub for wafers and chips. It plans to expand globally with assembly and packaging units to serve end-user applications. The company’s entire revenue stream originates from exports to markets including the Middle East, the UK, and the US.
In 2024, Polymatech aims to achieve Rs 1,000 crore in revenue by introducing its solutions for medical applications initially targeting hospitals in Tamil Nadu. The Company is also seeking a 45-acre site for a new wafer fabrication unit. It is currently operating two plants in Tamil Nadu and planning further expansion.
Polymatech IPO date
Polymatech intends to raise Rs 1,500 crore through an initial public offering (IPO). The fresh proceeds from the IPO will be used for capital expenditures like Machinery.
It plans to re-file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI). Their earlier offer documents were returned by SEBI due to undisclosed shareholdings by the book-running lead managers.
CEO Nandam indicated that the revised prospectus and updated financials will now be filed with the Bank of Baroda and Axis Bank.
Is Polymatech Listed In NSE?
Currently, Polymatech is not listed on any stock exchange. However, it is traded in the unlisted market. The polymatech share price has grown from Rs 360 per share on June 23 to around 800 per share on June 24 which is a 122% annual growth. This growth came it is the first company to manufacture semiconductor chips in India.
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