Established in 1986, Cosmo Ferrites is India’s leading manufacturer and exporter of Soft Ferrites. The product serves all major applications like Solar Inverter, Sensor, VFD Drive, Energy Meter, Lighting, SMPS, Battery Charger, Induction welding/heating application.
In this interview, Mr. Pankaj Poddar, Group CEO, Cosmo Ferrites shares more insights about the company products, market and performance.
1. What are the roots of Cosmo Ferrites and what are its ambitions for the future?
Cosmo Ferrites was established in 1986 with a manufacturing facility in the foothills of Himalaya. Since inception the Company has maintained product and quality leadership in both domestic and export markets. The Company is currently the market leader for soft ferrites in India and also exports to 50+ countries across the globe. The Company is expanding its capacity by 50% in Q1 of next year and is highly optimistic of the global market. The Company believes that there is immense potential of growth in the global market and shall aim to capture at least 5% share of the global market in next few years which currently is below 1%.
2. With enormous impact on all the industries, what was the impact of Covid-19 on your industry?
The impact of Covid-19 on Electronics industry has been positive. This is since there is more Digitization and growth of electronics globally including growth of IT hardware. Moreover, the China + 1 Strategy is also benefiting India and there is good potential to scale up the overall Electronics manufacturing in India. The policies of the Government have also been favorable in this regard with various PLI and SPECS scheme announced by the Government.
3. In terms of import and export, how much international Cosmo Ferrites is?
We import some of our key raw materials and some are available locally. We are already working on localization of our key raw materials. As far as exports are concerned, we currently have 45%-50% of our sales in Exports market and with increasing capacity we plan to increase our overall volume of exports although since domestic demand and manufacturing is also increasing we will continue to be the leader in the Domestic market.
4. Tell us about the company’s performance in the last quarter.
The performance of the Company has been improving quarter over quarter. We reported EBITDA of Rs. 91.8 Million in Q3 FY22. Strong Domestic and Export demand, better sales realization and continuously improving internal efficiencies contributed to improvement in EBITDA.
5. What are the significant investments and new product launches by Cosmo Ferrites in the last 1 year?
The Company has invested in augmenting its R&D infrastructure this year. Moreover, the plan for capacity expansion by 50% is on track and expanded capacity will be operational by Q1 of FY 23. The Company has developed products for various applications including White goods and the Electric Vehicles.
