Incorporated in 1989, Nitiraj Engineers Limited has grown into a trailblazer in the field of electronic weighing scales, systems, and currency counting machines. With a reputation for innovation and quality, the company has become a leader under its trusted Phoenix brand, offering a wide range of precision products for both industrial and domestic use. From jewelry scales to taxi fare meters, Nitiraj Engineers Ltd.‘s state-of-the-art in-house facility ensures each product meets the highest standards. Committed to the ‘Make in India’ initiative, the company designs and manufactures its entire product line within India, serving over a million satisfied customers globally.
Their journey to becoming a publicly listed company on the National Stock Exchange is a testament to their unwavering dedication to quality, affordability, and excellence. With a robust international presence and ISO 9001:2015 certification, Nitiraj Engineers is setting new benchmarks in the weighing scale industry.
In this exclusive interview, Rajesh Bhatwal, Founder and CEO, shares insights into their remarkable IPO journey, the challenges they overcame, and the vision that drives their continued growth.
1. Could you provide a brief overview of Nitiraj Engineers Limited’s journey from its founding in 1989 to its decision to go public? What were the key factors that influenced this decision?
After graduating, I decided to venture into the weighing scale industry. In our first year, we achieved a turnover of ₹5 lakhs. Encouraged by our success, we continued to grow steadily each year. By 1996, we had established our business as a private company, marking a significant milestone in our journey.
Recognizing the potential for further expansion, I set my sights on Dubai, particularly the Sharjah Airport Freezone, as a strategic location for our operations. The region’s dynamic business environment and strategic location presented an excellent opportunity for growth.
As our ambitions grew, we realized that going public would provide the visibility and resources needed to implement our goals more efficiently. By becoming a publicly listed company, we aimed to attract more investors, enhance our market presence, and accelerate the execution of our expansion plans. This strategic move was pivotal in transforming our business, allowing us to reach new heights as we stand at 100 crores revenues and achieve our long-term objectives more effectively.
2. What were some of the biggest challenges you faced during the IPO process, and how did your team navigate these challenges?
We appointed a merchant banker to guide us through the process of going public. He handled all the necessary documentation and ensured we met all compliance requirements. Thanks to his expertise, the process was smooth, and we did not encounter any hurdles.
3. How has the IPO impacted Nitiraj Engineers Limited’s financial stability and growth? Can you share specific examples of how the raised capital has been used to enhance your product offerings and business operations?
When we first started, our operations were based in Dhule. As we grew, we moved to Silvasa and then to Himachal Pradesh, where we operated for 17 years. In 2017, we decided to go public through an IPO, aiming to establish a proper factory setup and strengthen our brand.
The IPO was a turning point for us. It provided the necessary funds to set up a significant factory in Dhule, enhancing our production capabilities and brand recognition. This strategic decision proved to be the right one, as it laid the foundation for our continued growth.
With the new factory in Dhule, we have successfully controlled overhead expenses and initiated research and development activities. This investment in infrastructure and innovation is propelling us towards further growth and success.
4. Since going public, how has Nitiraj Engineers Limited’s market positioning and brand visibility changed? What new opportunities have emerged as a result of being a publicly traded company?
Our visibility increased significantly after we went public. In 2021, we transitioned from the SME board to the main board, which further expanded our visibility and reach. This move greatly enhanced our product marketing efforts and opened up new opportunities.
One of the most notable opportunities came from Germany, as well as from various institutions. We began supplying our electronic weighing scales in bulk quantities to the Public Distribution System (PDS) for ration shops. These opportunities arose because our setup was capable of handling large-scale orders and meeting international standards.
This experience reinforced the importance of strategic funding. By wisely investing the funds raised from our IPO, we created a robust infrastructure that attracted larger opportunities and facilitated our continued growth.
5. How has the IPO affected your relationships with suppliers, distributors, and customers? Have you noticed any changes in their perceptions or expectations?
Our suppliers have always been loyal to Nitiraj due to our commitment to prompt and timely payments. This reliability has fostered strong, lasting relationships with our suppliers. Additionally, being a public company has instilled a sense of pride among all our stakeholders. They value their association with us, knowing that we uphold high standards of transparency and corporate governance. This mutual trust and respect have been crucial in our continued success and growth.
6. What strategic initiatives have Nitiraj Engineers Limited undertaken post-IPO to further its growth and market reach, especially in the international markets? How has the fresh capital supported these initiatives?
We are venturing into the field of agricultural drones, with prototyping already completed. This new initiative aims to revolutionize farming practices and improve efficiency. Additionally, we are expanding our security automation product segment, targeting hotels, builders, and government agencies with products such as electric doorbells and audio door phones to meet their security needs.
Furthermore, we are enhancing our existing product segment to increase our supply for bulk tenders and private orders. This expansion will enable us to better serve our customers and capitalize on new market opportunities. By diversifying our offerings and improving our production capabilities, we are positioning ourselves for sustained growth and success.
7. What advice would you give to other SMEs considering an IPO? Based on your experience, what are the key lessons learned from Nitiraj Engineers Limited’s IPO journey that could benefit other companies in the industry?
I believe that success in the share market is achievable through hard work and timely goal accomplishment. Investors are constantly observing, and they are willing to provide financial support to companies that demonstrate potential. The key to attracting and maintaining investor confidence is integrity and honesty. By consistently upholding these values, you can build trust and secure the necessary funds to drive growth and achieve your objectives.
