Rossell Techsys eyes bigger play in India after global wins

How has Rossell Techsys’ journey been so far, since winning its first contract with Boeing in 2013?

Till about four years ago, we primarily had just three customers. But in the last two years alone, we’ve added close to 35 new customers to our portfolio, most of them are Fortune 500 companies. Our geographical footprint has also expanded.

Earlier, we were very US-focused. But now, we have strong engagement with clients in Europe, India, and Israel.

In terms of scale, we’ve gone from operating out of a 4,000 sq. ft. facility to a 225,000 sq. ft. one. Our team has grown to 850 people, and we expect to touch 950 by the end of this year.

What does your revenue profile look like currently?

In FY24, we recorded revenue of ₹260 crore, with a profit before tax (PBT) of ₹10.2 crore. We faced a few challenges during the year, but those have been overcome.

Currently, we have strategic agreements worth ₹2,800 crore and confirmed purchase orders (POs) totaling ₹800 crore. Most contracts in aerospace and defense are long-term, typically three to five years. Customers usually start placing POs six to twelve months ahead of deliveries based on these strategic agreements, so we expect strong revenue visibility in the short to medium term.

The government recently transferred 10 technologies from ISRO to private players. What does the shift toward privatisation look like for Rossell?

We’ve always been an export-oriented unit, with most of our focus on international clients. But India has come a long way in aerospace and defense over the last decade.

In the past 12–18 months, we’ve been focusing much more on the Indian market. We’re working with key domestic players like IAF, HAL, BEL, and others. The goal is to expand both our product portfolio and order book in India. There’s significant potential here, and we definitely want to increase our domestic work share, although we’ll continue to maintain our global footprint as well.

Can you share some color on your work in sectors beyond aerospace and defense, such as space and energy?

Until recently, our focus was mainly on aerospace, aircraft and helicopters. But over the past two years, we’ve diversified significantly. We’ve secured several contracts in ground-based equipment, radar systems, and satellites. We’re now working in the space segment (including commercial and government contracts), as well as in energy, semiconductors, and industrial systems.

Importantly, all of this continues to draw on our core competencies, wire harnesses and electrical panels. So, while our end-user industries are expanding, the engineering remains rooted in our strengths.

What are your growth plans in the semiconductor space?

We’ve already bagged a sizable contract in the semiconductor sector, and revenues from that will start coming in this year.

The semiconductor industry is expected to grow significantly. Companies we’re working with are targeting 25–30% year-on-year (y-o-y) growth and aim to double in size over the next three years. We’ve never been part of this space before, so this is going to be a very significant contributor to our revenue this year and in the years ahead.

What kind of investments are you making in R&D?

We are looking at nearly 10 per cent y-o-y on R&D, investing in bots, which will help make us leaner. Additionally, we are also focusing on reengineering and creating alternatives in India.