Aimtron Electronics Eyes $25-30 Mn Additional Biz from ICS Acquisition

Electronics contract manufacturer Aimtron Electronics on Friday said it expects to clock additional revenue of USD 25-30 million, about Rs 230-275 crore, annually from newly acquired US-based electronics manufacturing and design services company ICS.

Aimtron Electronics expects the acquisition to help it mitigate any risk that may arise from tariffs and geopolitical uncertainties with a diversified, multi-location operating model, according to a regulatory filing.

"ICS gives us a strong base in the US with an experienced team, sticky customer programmes, and a facility in Decatur that we can expand.

"The business has a current revenue base of USD 16.9 million (closure through December), and we have clear three-year visibility to scale this to a USD 25–30 million annual run-rate through capacity expansion and deeper OEM engagements," Aimtron Electronics founder Mukesh Jeram Vasani said.

Aimtron has acquired ICS for less than Rs 75 crore, about USD 8 million, which is funded partly by the Rs 100 crore it raised through warrants.

ICS operates in the electronic systems design and manufacturing (ESDM) domain and engages with global OEMs in mission-critical and high-reliability segments spread over an area of 3.9 acres in Decatur, Illinois.

At present, only around 54 per cent of the current capacity is underutilised, which Amitron plans to scale up to 90 per cent in the next two to three years, according to the filing.

"The acquisition of ICS is a cornerstone of our 'Glocal' strategy, combining the engineering precision of the US with the immense scale of our Indian manufacturing ecosystem. This is a significant leap toward our vision of becoming a Rs 1,000 crore global ESDM powerhouse," Aimtron Electronics, Chief Operating Officer, Nirmal Vasani said.

The company has set a target to achieve Rs 1,000 crore revenue in the next three years.