Shridhan Automation Pvt Ltd manufactures field instrumentation for highly critical process industries such as oil & gas, power, steel, pharmaceutical, chemical, food & beverages, marine and mining industries, etc. Having sales and marketing offices in the key international markets, the company is focusing on solution based approach for a complete customer satisfaction. In this interview with Rakesh Rao, Gautham Shenoy, Vice President - Business, Shridhan Automation Pvt Ltd, highlights on the company's new plans to meet the evolving market dynamics.

How has been the business in the last couple of years? 

Being in the solution-driven business, we provide lot of application based customized solutions and our customers are a combination of contractors, OEMs, end-users, and channel partners. Our business has been stable and growing despite the invisible challenges since last 2 years. 

While operational business took a hit due to Covid in 2020-21 and 2021-22, we still managed to grow with order bookings and revenue by operations. In the second half of 2021-22, the demand really picked up and the momentum has continued till now. The challenge has been on the supply side with unpredictability in raw material delivery and rising input cost. There are lot of question marks on electronic and mechanical components with respect to price, delivery and availability. There is no guarantee when this uncertainty will end. 

Overall, it is a good scenario. But, from execution perspective, it is a challenge. Thankfully, we have a significant order booking. In 2021-22, we grew by about 48% in terms of revenue and we are poised to grow at more than 40% this year. Product and application diversity with wide market recognition has helped us sail through the rough time.

Any new products that Shridhan Automation is presently working on? 

We had launched a new product + service line (Diaphragm Seal Systems) at the end of 2019. A lot of interest was generated among the customers from automation industry as the new product was focused on primary automation and the Pressure Sensor industry. We have indigenous designs now for most of the Indian industry applications. This product has a niche customer base but unlimited applications. 

In addition, we have also developed in-house solutions with IoT sensors. Some of these solutions are undergoing pilot testing in the field. This is generating lot of interest among existing customers. 

Could you please elaborate on the IoT-based product range?

We are working on solution-based approach for IoT-based application. With this, legacy sensors (that we have supplied earlier) can be converted into IoT solutions. We are applying a plug-and-play approach; thereby, reducing deploying cost for our customers. There are lot of old assets in the process industries which can be modified or modernised by adding IoT sensors; thus, offering huge untapped market for our new solution and generating a proven track record for growth. 

What are your plans to boost exports?

At present, exports account for 40% of Shridhan’s revenue. We aim to increase the contribution from overseas market to 50% of our turnover in the next couple of years. Our exports are primarily targeted at developed countries such as Middle East, Western Europe, UK, US, Canada, etc. We have been focusing on South East and Far East Asian markets in the last couple of years. We are one of the few companies that export to Japan. Such a market reach marks a lot about our quality, consistency, and reliability.

How has been domestic demand?

Domestic demand is exceeding the exports market in the last 1.5 years. Again the hurdle is execution. We mostly deal with project-focused business and most of the projects are taking a lot of time to finalise and conclude. Hence, it is challenging to sustain pricing (with input cost increasing).

What are your growth plans in the coming years? 

We have seen significant growth in the last few years because of our new product line and aggressive strategies. We are expecting demand for the new solution line, like IoT-based Sensors to take over the industry applications. 

Shridhan Automation is eyeing for overseas company acquisitions and has plans to start manufacturing unit outside India (to be closer to our end-users). Countries in the Gulf region are encouraging localization of manufacturing, having a production (or assembly) line in these markets help us scale up our overseas business. Specific details shall follow soon!