Having evolved from a regional business into a diversified manufacturing company, auto ancillary manufacturer Sumax Engineering now aims to expand its presence in international markets post-IPO.
For Sudeep Mehta, Managing Director of Sumax Engineering, the tremendous transformation in India’s automotive sector motivated him to expand into manufacturing.
“I wanted to build a business in a sector with strong long-term potential, and automotive manufacturing stood out because India has a large and growing market, a strong engineering talent pool and significant opportunities for innovation,” he says.
The company has, over the years expanded its portfolio by developing its own brands and entering into private label partnerships with global companies.
For Sudeep, its now time to shift his efforts towards the next phase of growth.
“The company’s focus now is on strengthening its manufacturing capabilities, expanding its market presence and establishing itself as a trusted player in both the Indian and international automotive ecosystem,” he explains.
From sales growth to profitable growth
Scaling a manufacturing business, however, has required Mehta to look beyond topline growth. One of the key lessons for him has been the importance of profitability and product focus.
“We realised that we should not focus only on sales, but also on profitability,” he says.
The company responded by reducing its number of SKUs and concentrating on products that were both fast-moving and profitable. This approach, according to Mehta, helped improve profitability through innovation, cost cutting, better production processes, stock planning and greater product focus.
Capacity was another challenge as the business expanded. Sumax Engineering’s existing facilities were nearing their limits, but instead of immediately adding capacity, the company first focused on optimising its products and processes. Having worked on that optimisation, it is now moving into the next phase of expansion.
“We were almost maxed out with our existing facilities. So, rather than expanding immediately, we first focused on optimising our products and processes. Now, in the second phase, we are expanding our manufacturing facilities,” Mehta says.
The approach reflects a broader emphasis on building the operational foundation before accelerating expansion.
A technology-agnostic opportunity
The automotive industry is undergoing a major transition, with electric vehicles, hybrids and evolving technologies changing the traditional automotive landscape. For Sumax Engineering, however, this shift presents less of a disruption because its products address a requirement that cuts across different vehicle technologies.
“Luckily, we are in a segment that is not determined by the technology used in the engine,” Mehta says.
The company’s products cater to companies that use paint and require surface finishing, irrespective of whether the underlying vehicle is powered by an internal combustion engine, hybrid technology or an electric powertrain. This gives Sumax Engineering exposure across different categories of vehicles.
“Every company that uses paint and believes in surface finish, whether it is metal or plastic, needs our products,” he adds.
As a result, Mehta believes demand for the company’s products can continue to grow as vehicle production expands. Importantly, he also sees an opportunity beyond the manufacturing stage, with demand continuing in the aftermarket.
“So whether it is an EV, hybrid, petrol or diesel vehicle, our products are required. We believe our demand will continuously grow, not only when the vehicles are manufactured but also afterwards in the aftermarket,” he says.
Competing beyond price
In a competitive market, Sumax Engineering’s proposition is built around a combination of quality, pricing and customer service. Mehta says the company’s objective is to provide high-quality products at competitive prices, while recognising that customers increasingly expect more than just a cost advantage.
“Our focus is on high-quality products at the most competitive prices. But price is not the only factor. Today, customers also require service and want their requirements and queries addressed quickly,” he says.
One of the company’s major strengths, according to Mehta, is its pan-India distribution network. This is supported by a team with considerable experience, including employees who have been associated with the company for decades.
The combination of distribution reach and an experienced team allows the company to respond to customer requirements quickly, which Mehta considers an important competitive advantage.
The start of a new journey
For Sumax Engineering, the IPO comes as a significant milestone for the company’s next stage of expansion.
“It is only the beginning of a new journey for the company. We have very ambitious plans for the future, and with the Indian automotive market growing rapidly, we see tremendous opportunities ahead,” he explains.
Mehta also expressed his appreciation to investors for their confidence in the company.
“We would like to sincerely thank all our investors for their trust and for giving us such an encouraging response to the IPO. Their support gives us even greater confidence as we move forward and work towards achieving our long-term ambitions,” he says.
For Sumax Engineering, therefore, the post-IPO phase is about converting that investor confidence into sustained expansion.
Taking the product basket global
The scale of the opportunity that Mehta sees is reflected in Sumax Engineering’s product portfolio.
“We have a basket of around 3,000 products, and the Indian market for these products is at least ₹5,000 crore and growing. There is enormous potential to grow and offer these products,” he says.
But the larger opportunity, in his view, could lie outside India. Sumax Engineering is already exporting to seven countries, providing an initial base from which it can build its international presence.
“The idea in the years to come is to focus on the global market and expand our products internationally,” Mehta says.
That international push is set to become an important component of the company’s long-term strategy. With a broad product basket, established domestic distribution and an existing export presence, Sumax Engineering is looking to use its next phase of growth to move from being a predominantly Indian manufacturing player towards a more globally oriented business.
For Mehta, the road ahead is therefore defined by expansion on multiple fronts: manufacturing capacity, domestic market presence and international reach. The IPO may have marked an important transition for Sumax Engineering, but the larger ambition is to use this new chapter to take the company to a wider global market.
