Compiled some notes, few weeks ago:
CWD LTD
03/05/2024
Listed on BSE Sme, Lot size 100
BUSINESS OVERVIEW:
CWD stands for Connected Wireless Devices. Our Company is an Information and Communication Technology (ICT) based company that designs, develops, manufactures, and sells integrated solutions combining the power of software and electronics.
All products that are designed and developed in the company are focused on wireless technologies either on:
-Short range radio technology like NFC, Bluetooth BLE, Wi-Fi, Zigbee;
-Mid-range systems like LORA
-Long range communication systems like 5G LTE, NB-IOT, LTE CAT M1 etc.
CWD operates mainly through the segments of Consumer Electronics and Design and Development of Technology Solutions for various Enterprises and Businesses.
Our diversified product portfolio includes:
- Smart Medical Consumer Electronics,
- Products for Vaccine Tracking and Delivery,
- Tracking devices for Farm Cattle that monitor both movement and health,
- Electronics for converting Electric Power meter into a Smart Power meter,
- Employee Safety and Identity Solutions,
- Electronics that once embedded provide Smart Lighting capabilities to enterprises and consumers reducing their costs,
- Bluetooth Low Energy Modules that can be used across various white goods and projects etc.
We are a fully integrated end-to-end integrated solution provider and original equipment manufacturers (OEMs) with capabilities ranging from global sourcing, manufacturing, quality testing, packaging, and logistics.
We are an innovation-driven company with strong focus on research and development, which allows us to develop new products suited to customer requirements and helping them to stay ahead of the curve.
We manufacture and supply these products to customers globally who in turn distribute these products under their own brands.
We have developed R&D capabilities that include electronics hardware designing, system architecture, mechanical and product designing, prototyping, and testing. Apart from undertaking designing, our company also assists our customers in cost reduction through product engineering.
To carry out businesses in different location within India and abroad, we have 3 subsidiaries namely:
CWD Manufacturing Pvt. Ltd. (99.98% Subsidiary) having its registered office in Mumbai, India, CWD Innovations HK Limited (100% Subsidiary) having its registered office in Hong
Kong and SDG Global Private Limited (99.98% Subsidiary) having its registered office in Mumbai, India.
PRODUCTS:
Low power 2.4 GHz + LoRa®
CWD Ltd entered into smart meters segment with a ground-breaking communication solution designed to operate on the 2.4GHz frequency.
As the Govt. focuses on initiatives like National Smart Grid and Smart Cities Missions as well as the Ujwal DISCOM Assurance Yojana, demand for reliable & cost-effective smart meter solutions is on the rise.
Read more here:
Nordic Semiconductor Partnership:
CWD is Nordic’s first Indian BLE (Bluetooth Low Energy) module manufacturer and design partner. The company’s products are also listed on Nordic’s website.
Nordic is a fabless semiconductor company in Norway and focused on low-power wireless communications devices.
SOLUTIONS:
Sound Box
A wireless payment terminal designed for smart, secure and simple payment processing by providing instant audio payment confirmation.
USE CASES:
Hospitals:
Every patient in a hospital is monitored for their vitals like body temperature every 2-3 hours. SmartTemp+ does this in an automated way and provides information that brings down the workload and ensures proper safety of the frontlines as it decreases the nurse-to-patient contact time considerably.
Self-Quarantined Patients:
The patients who are self-quarantined are regularly monitored to ensure their safety. Their movements need to be monitored too.
Frontline Workers:
With many healthcare workers working on the frontline, it is imperative that a close monitoring system needs to be in place for their health. SmartTemp+, in addition to PPE, can monitor their body temperature to ensure proper health.
Factories & Workplaces:
It is imperative to look after workers’ safety in factories and workplaces. SmartTemp+ can ensure 24×7 temperature monitoring and assist with contact tracing in case of an infection breakout in the workplace.
USE CASES:
Asset Tracking:
Simply tag your assets with the device and you’re on your way to tracking the location of your assets in real time. Applicable in a wide range of industries like logistics & warehouse, retail supermarkets, office buildings, hospitals, airports, manufacturing facilities, etc.
Inventory Tracking:
Optimise your inventory management by tagging all your valuable assets and track and monitor their movement within the premises in real time.
Activity Monitoring:
Remotely monitor the movement of your tagged assets across a wide range of industries with the help of our Asset Tracking Solution.
From Annual Report:
Industry
The Indian electronics system design and manufacturing (ESDM) sector is one of the fastest growing sectors in the economy and is witnessing a strong expansion in the country.
The Global Bluetooth Low Energy (BLE) market is estimated to reach $28 billion growing at a CAGR of 20% in the next 5-6 years.
Peers
CWD Ltd is the only listed company to play this theme. U-Blox is their biggest global competitor with around 4000 crore revenue. CWD has kept a target of replacing U-Blox and the process has already started where a German giant Osram onboarded CWD in place of U-Blox.
Management
Mr. Tejas Kothari has completed his Bachelor of Commerce from University of Bombay in the year 1992. He is a successful entrepreneur with over 25 years of experience.
Mr. Siddhartha Xavier has completed his Computer Science and Engineering from Bharathiar University, Coimbatore in the year 2000. Before becoming a director in our Company, he had worked with Reliance Communications and Globalspace Technologies limited. He has around two decades of experience in the technology Industry
OPPORTUNITIES:
- Low penetration of products; much lower than the global average
- Huge push from the government to become self-reliant (reduce import dependency) and to increase exports by introducing various schemes
- Consumption in India to be serviced through the direct manufacturing route
- Focus of brands on Branding & distribution & manufacturing is getting outsourced
- Favourable demographic indicators like urbanisation, nuclearization of families, young aspirational population, increase in disposable income of individuals are expected to act as catalyst for growth.
- Evolving of physical and social infrastructure, better logistics, and an expanding e-commerce industry
OUTLOOK:
India witnessed a substantial spike in demand for electronic products in the last few years; this is mainly attributed to India’s position as second-largest mobile phone manufacturer worldwide and surge in internet penetration rate. The Government of India attributes high priority to electronics hardware manufacturing, as it is one of the crucial pillars of Make in India, Digital India and Start-up India programmes.
The Electronics System Design & Manufacturing (ESDM) sector plays a vital role in the government’s goal of generating US$ 1 trillion of economic value from the digital economy by 2025. With various government initiatives aiming to boost domestic manufacturing, India has already started witnessing initial movement with increased production and assembly activities across products such as mobile phones and other consumer electronics.
Technology Risk:
The business in which CWD deals in is affected with rapid change in technology. The company has to adopt dynamic changes in technology under electronics industry. The company has to be up to date with the rapidly changing technologies.
CWD has installed measures which lead to a cost-effective way of production. Moreover, the company’s aim to emerge as a cost-efficient player and attain cost leadership will help it mitigate any global economic risks.
Company’s senior management has an average experience of more than 20 years in the industry. This allows the company to capture the right opportunities at right time.
CWD is in the industry of Information and Communication Technology (ICT).
With rise in standard of living of people, and a change in lifestyle electronics industry is expected to grow in the years to come. The industry may face a change in preference but it will never cease to exist. CWD has successfully maintained a strong relationship with its key customers. Also, CWD is constantly expanding its customer base which will help it to deal with this risk. The company has always moved ahead with changing technology. Its R&D centres is equipped with the latest technology.ORDER WINS
Fund Raise:
Pursuant to the provisions of the SEBI Listing Regulations, we hereby inform you that, the Board of Directors of the Company through Circular Resolution passed on January 13, 2024 has considered and approved the Allotment of 2,79,000 Convertible Warrants at a price of Rs. 747/- each (including face value of Rs. 10/- each at a premium of Rs. 737/- each) by way of Preferential Issue to the certain identified Non-Qualified Institutional Buyers under Non-Promoter category.
Check the name at Serial No. 3
I couldn’t find the reasons for decline in September H1 profits. No explanation is given. If anyone has any insights, Please share.
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Compiled notes from here & there
Since writing my notes, H2 results are out and the company is back into profit.
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