### **Overview** SPARC ELECTREX LIMITED (formerly *Spare Systems Limited*) is a diversified Indian engineering and technology company operating in the manufacturing, trading, and marketing of power tools, metal products, and electronic security systems. The company is strategically positioned across multiple high-growth sectors including manufacturing, defense, infrastructure, automotive, and IT-enabled services. Publicly listed on the Bombay Stock Exchange since November 1995, SPARC ELECTREX has evolved into a multi-industry player with a focus on innovation, strategic partnerships, and operational excellence. The company is led by **Shobith Ganesh Hegde**, Whole Time Director & CFO, and is promoted by **Shobha Anant Hegde**, **Electrex International Private Limited**, and **Electrex Power Tools Private Limited**. --- ### **Key Strategic Developments** #### **Exclusive Trademark License Agreement with Hyundai Corporation Holdings Co., Ltd. (Korea)** - **Effective From:** September 2023 (reiterated Sep 2024) - SPARC ELECTREX has secured an **exclusive trademark license** to develop, manufacture, source, market, sell, and distribute **"HYUNDAI" branded power tools and related products** in India. - Product portfolio includes: - Drills, grinders, saws - Cordless tools and power washers - Vacuum cleaners, abrasives, and accessories - This strategic alliance is expected to: - Significantly strengthen the company’s **market presence and competitive advantage** - Drive **higher sales volumes and improved profit margins** - Leverage the global brand equity of Hyundai in the Indian tools and equipment market --- ### **Core Business Segments & Offerings** #### **1. Manufacturing & Trading** - **Products:** Power tools, cordless tools, hand tools, garden tools, pneumatic & woodworking tools, machinery, spares & accessories, steel, and metal products. - **Applications:** Used in construction, engineering workshops, manufacturing, fabrication, agriculture, and infrastructure. - The business is **working capital intensive**, requiring robust inventory management and efficient debtor-creditor cycles. #### **2. Engineering & Defense Projects** - Involved in government and defense sector projects, including: - Upgradation of **130mm guns** - Development of **MAST Giraffe radar system** in collaboration with SAAB (Sweden) - Upgrade of **428 ZU-23 Air Defence Guns** for the Ministry of Defence - Engaged in vendor registrations with major PSUs: **HAL, OFB, BHEL, NHAI** - Ongoing participation in government tenders and bid processes for engineering and defense contracts #### **3. Electronic Security Solutions & Embedded Systems** - Provides hardware and software-based **electronic security systems** catering to manufacturing, retail, and data centers. - Rising demand due to increased security threats in India has bolstered growth in both public and private sectors. - Expanding into **data-centric appliances**, **identity management**, and **IoT/telematics** leveraging biometric and connected embedded systems. - Targeting SMEs for data protection and IT infrastructure solutions. --- ### **Sales & Distribution Strategy** - **Six regional divisions** across India managed by regional managers overseeing sales teams. - **Two-tier distribution model**: - Sales via **Authorized Dealers** → Retail hardware outlets - Maintains a formal **Dealer Policy Manual** and updated **Dealer Price List** - No long-term contracts with distributors; relies on purchase orders and negotiated terms. - Key growth initiatives: - Expansion of distributor network across geographies and customer segments - Strengthening after-sales service to enhance retention - Increasing manufacturing capacity to meet rising demand --- ### **Client Base & Industry Coverage** - **Diverse client sectors:** - Manufacturing, IT & ITES, Pharmaceuticals, Auto Components, BFSI, Real Estate, Telecom, Healthcare, Tourism, Education, Agri-allied - **Key Clients Include:** - **Banking & Finance:** Punjab National Bank, SBI, Canara Bank - **Infrastructure & Construction:** NHAI, HCC Ltd. - **Manufacturing & Industry:** Jindal Aluminium Ltd., Panther Industrial Products Ltd., Shrydus Industries Ltd. --- ### **Service Offerings (Outsourced Financial & Management Accounting)** SPARC ELECTREX also provides tailored **outsourced financial and management accounting services**, including: - Financial accounting and regulatory reporting - Payroll and asset accounting - Accounts payable/receivable management - Consolidation of financial statements - MIS and cash accounting - Support for corporate compliance and audit preparedness --- ### **Management & Leadership** #### **Shobith Ganesh Hegde – Managing Director & CFO** - MBA (Kingston University, UK), BBA (Greenwich University, UK) - Over 4 years at **Punj Lloyd Limited** managing defense projects (e.g., ZU-23 Air Defence Guns, ₹160 Cr homeland security project) - Former **Head of Marketing** at Electrex International Private Limited - Led international sourcing from China, Taiwan, U.S., and Europe - Instrumental in new product launches, pricing strategy, and global trade operations --- ### **Professional Advisors & Partnerships** The company collaborates with experienced professionals in legal, financial, and auditing domains: #### **Audit & Tax Advisory Firms** - **Motilal & Associates LLP** (Founded 1985 by CA Motilal Jain) - Over 40 years of experience in statutory audits, tax litigation, M&A - Advises 100+ clients annually; specializes in IPOs, real estate, logistics, and manufacturing - **CA Rohan Pingle** - 20+ years in direct/indirect taxation, risk-based audits - Certified Concurrent Auditor (ICAI); contributor to *TaxGuru* and author on professional development - **CA Ashish Verma** - 5+ years in GST, profession tax, import-export compliance - **CA Manisha Chandak & CA Amit Gupta** - Expertise in bank audits, stock audits, regulatory compliance, and management accounting - **N H Variava & Co.** (CA Niraj Variava) - 15+ years in taxation, audit, and representation before judicial bodies #### **Legal & Secretarial Support** - **M/s. Pankaj Trivedi & Co.** - Full-service firm offering corporate law, SEBI, RBI, M&A, and management advisory services - Led by CS Pankaj Trivedi (LLB, 10+ years’ experience) with a team of CSs, CAs, and advocates