Elin Electronics IPO: Sethia family to hold up to 57-58 % stake in post IPO, says Director Sanjiv Sethia

Elin Electronics' Director Sanjiv Sethia, in an exclusive interview to Zee Business, said that the reason his company does not sell its products directly is because its strength is manufacturing and not marketing.

Sharing information regarding Elin Electronics' history, he said that Elin stands for Electronic Industry, and his company has been into electronics business for the past 53 years. 

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Talking about its footprint, he said that the company manufactures electronic products like fans and small appliances. And informed that Elin has a strong customer base among clients like Philips and USHA.

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“We believe that our core strength is manufacturing of electronic products; for sales and marketing, we need different strengths. Our customers are linked to us for the past 10 to 50 years and they are our strength. And if we enter the marketing and sales segment, our customers will become our competitors, so it is better that we stick to our strength,” said Sethia.    

Talking about the company's ownership structure, he said that the whole Sethia family holds around 95 per cent of the stake and after selling will still have around 50 per cent stakes. 

“Sethia family holds 95 per cent holding, and, as per legal advisory we have defined family members as promoters. So, as a family, the family holding will be above 50 per cent post IPO,” Sanjiv Sethia said. 

Talking about the gap in the profits, he said that Elin had to revamp its whole working process due to changes in technology, and had to reinvent and establish itself around five years ago. 

He said that the company works on the cost-plus model, which means that any increase in the cost of product is passed on to the customers, and therefore the company is able to keep its margins stable.

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