Using Altek’s ITAR accreditation, Cyient DLM would be buoyed for future growth and customer proximity while ensuring leadership on all fronts in embedded systems.
With the purchase of Altek Electronics, Cyient DLM hastens its strategic growth. This acquisition would increase Cyient DLM’s footprint in the US, especially with specific reference to defense, and improve its capability to serve the Medical, Healthcare, and Industrial sectors. Altek’s ITAR certification coupled with its advanced manufacturing capabilities and established relationships will provide Cyient DLM a key competitive advantage.
In this interview, Anthony Montalbano, CEO, of Cyient DLM, spoke about how this acquisition fits into the long-term vision of Cyient DLM and adds to its commitment to innovation, operational excellence, and client proximity all over the world.
How does this acquisition of Altek Electronics blend with Cyient DLM’s overall growth strategy, especially in strengthening your geographic presence while also improving the closeness of clients in the US?
Acquisition of Altek Electronics happens to be one of the most strategic steps towards new growth opportunities for the company. It further strengthens its geographic footprint in the US defense sector, aided by Altek’s ITAR certification. Besides, this acquisition brings us into US markets with some of the best names for clients in our portfolio.
An important element in that aspect is the offshore/restore model. Offshore, initially, would be for lower production costs, increasing the efficiency cost. But, by moving parts offshore back to the US, we can improve the footprint with reduced transportation costs, better supply chain resiliency, and faster responsiveness to market demands. We’d be optimizing operations and would have a competitive edge with this balanced mix.
Furthermore, the acquisition ties into the ‘Build America Buy America’ initiatives. Building our manufacturing footprints in the US, in addition to complying with local regulations and tariff laws, is particularly critical for our operations in the defence sector. Such measures not only keep us compliant but also enhance our reputation with clients and stakeholders given the importance of domestic sourcing to those parties.
How does Altek’s joining Cyient DLM better position you to address the customer’s wider needs across medical & healthcare and industrial spaces?
The proximity of Altek to the US medical hub in Massachusetts and to the big original equipment manufacturers such as Otis Elevator, Stanley Black & Decker, Pratt & Whitney, Raytheon Technologies (RTX), Sikorsky, Lockheed Martin, Medtronic, Terex, and GE Healthcare assists the company greatly in meeting the possible most demanding complexities of customers’ needs in the Medical, Healthcare, and Industrial realms with speed and precision. Being near some of the key customers indeed facilitates better collaboration and faster response times.
Design capability upon the Parent Company coupled with leveraging both offshore and onshore resources add value to the sections as we offer complete engineering solutions which on another side are highly cost-effective and of high quality. Offshore teams would be cost-effective to clients while at the same time, onshore teams would also work with these clients to enable them to do fast iterations and redesign of the solution. This hybrid model allows us to provide very personalized bespoke solutions because these segments, too, are very regulated and demanding.
Apart from that, Altek has a customer base, and its solid expertise in the Medical & Healthcare and Industrial sectors only augments our space. Altek was already associated with some major players in these industries, and the proven track record of their services only adds to our credibility and market presence. Double their capabilities with us, and we will have a much larger suite of services and solutions, thus enabling us to better meet the changing demands of our clients.
Altek’s ITAR certification has opened new doors for growth opportunities in the US defence sector. Can you elaborate on how Cyient DLM intends to capitalize on the benefits of this certification to widen its footprint in this market?
Thus, we have the ITAR certification by Altek that would help them measure the stringent regulations to become involved in defense-related manufacturing in the United States.
We will harness this certification since we have a great foundation in Aerospace & Defense, both in engineering and manufacturing. For years, we have worked with most OEMs in the industry providing a comprehensive range of solutions across the entire value chain, from initial design and engineering to full-scale manufacturing and even after-market services which have the capability to align with the highest standards and very specific needs of defense clients.
The new ITAR certification brings with it the ability to manufacture military-related products in the country, which carries an enormously beneficial advantage. The scenario is one with the best good fortune of both worlds- compliance with the required regulations and at the same time, conformance to the strategic priorities of many of our A&D customers, who favour or even demand compliant domestic manufacturing in their contracts for security and compliance reasons. Thus, using our heritage and intimate knowledge base, we will extend our solution value propositions to them. We can now offer end-to-end service with respect to US regulatory compliance, and therefore, bring an enhanced value proposition from our end.
How does Cyient DLM’s market position benefit and its value-driven growth accelerates by Altek’s strong relationships and reputation in markets?
Their inherent asset established relationships with customers and a strong market reputation powerful for fortifying our market position. Gaining access to Altek brings us the key relationships that they hold within the Medical and Industrial sectors, diversifying our portfolio and broadening by application, beyond an overload of focus on Aerospace and Defense (A&D).
All that being said the key benefits of this diversification are to perfect the cyclicity that is often found in the A&D sector. Sales cycles in A&D have been during the last year, while lead times are much longer than in other industries, production times are considerably longer, and cash flow is also much longer than normal. This requires extensive financial strength and operational problems can be caused by lengthy timelines to the market. The Medical and Industrial sectors usually have shorter sales cycles. By penetrating these sectors, we can thereby lessen the extent of financial and operational impact from the longer A&D cycles. This balance allows us to be in a more stable and predictable position, which is also critical for sustaining growth and investing in innovation.
With Altek’s 80,000 sq. ft. manufacturing facility now integrated with Cyient DLM, what plans does Cyient DLM have to further innovate operational excellence or scalability in its global delivery of high-quality and reliable services?
The addition of Altek’s 80,000 sq. ft. manufacturing facility expands our operational capabilities. It is equipped with the latest technologies and complies with AS9100 and ISO9001 certifications to manufacture the highest quality products and processes. Altek is ITAR-certified, allowing us to meet strict regulatory requirements for the defense-related manufacturing base within the US, which is consistent with our strategic goals.
Being an established name in the medical field with high accuracy and quality, Altek certainly built up faith and experience into it to cater and give our services a different edge above our competitors. This gives us the added capability to reach scalable operations and deliver global high-quality and high-reliability services.
In what way this acquisition is a complement to the Cyient DLM’s long-term vision of becoming the leader in EMS for regulated, high-criticality industries?
This is a necessary transformation towards being the premier EMS partner for compliant, safety-critical industries. The ITAR certification strengthens our access to the US defence market and integrates this work into our activities in commercial aerospace, which will further extend to defence aerospace. By engaging in both areas, we have broadened the market definition and earned our place as a trusted partner in these environments.
What actual capabilities in manufacturing from Altek Electronics can compliment Azillot DLM’s strengths as they are now, and how do you plan to combine those to give yourself an edge over others?
Altek’s manufacturing capabilities add to our existing stock, particularly those in high-precision and complex manufacturing. When combined with our own, these capabilities enhance our overall efficiency and service delivery. The competitive advantage created by such integration allows for a wider service and solution offering to meet the diverse needs of our clients more effectively.
How will it cultivate innovation and advanced manufacturing technologies within Cyient DLM for meeting the lapsing demands of the key segments?
Altek Electronics would be assimilated into Cyient DLM’s arm of innovation and advancement of manufacturing technologies. This brings to the build-to-spec (B2S) value proposition with design teams much closer to customer locations for faster iteration and redesign. This proximity drives innovation in the product development process.
Altek has received ITAR certification, allowing them to offer end-to-end solutions conforming to all regulations set by the United States, especially for defence clients. With the advanced manufacturing technologies’ applicability, it becomes possible to cater to the ever-evolving market demand in the Medical and Industrial sectors, thereby paving the way to effectuating innovative solutions. Our NPI advocate comes closer to the customer and eases development speed while ensuring product construction meets client needs.
What are your expectations regarding the acquisition will improve the experience for customers and value proposition from the standpoint of existing ones as well as new ones?
This acquisition has a great impact on the overall experience of the customers and their value proposition whether existing or new ones. With more localized efficient service provision, we can aptly meet their needs. Enhanced capabilities and expertise from Altek will strengthen our value proposition while providing our customers more complete and high-quality solutions.
Now that you have made an acquisition, what are your immediate and long-term priorities concerning the Cyient DLM in the US and global markets?
In the first step, achieve closer to our prime goal-the expansion of reach across the US defence sector through ITAR accreditation. ITAR certification is quintessential to meet all the rigorous regulatory compliances needed for defense-related manufacturing activities within the walls/territories of America. Harnessing such an excellent tool will help bolster capabilities at the same time enabling compliant high-quality solutions for defence clients amplifying the position within this critical marketplace.
We also intend to bring new logos with more capabilities and experience within the Medical and Industrial areas. The integration of Altek’s expertise and customer base from these sectors creates an interesting opportunity to broaden our portfolio and broaden our reach. Targeting clients to showcase our enhanced capabilities can drive growth and increase penetration within these markets.
We also intend to tap the established relationship with Altek to create our strategic footprint in some new geographies and industries. Altek’s strong reputation in the market, as well as existing relationships with clients, are both immeasurable assets that we can build on entering new markets and sectors. This kind of strategic expansion would ultimately give us access to new opportunities and avenues for value-driven growth across different regions.
Finally, we aim to make more strategic our relationships in Aerospace and Defence by adding a facility in the USA. The integration between Altek’s manufacturing capabilities and our existing ones would offer far more extensive and strategic solutions to our A&D clients. The integration would further enhance service delivery and build enduring relations with the A&D sector.
