Delta Manufacturing is a tale of two factories under one roof - a magnet maker that powered India’s early electronics industry and a garment-trims specialist stitched on through merger. Born in 1982 as Delta Magnets Limited, the company transformed in 2021 by absorbing a textiles business and renaming itself Delta Manufacturing Ltd, creating a diversified industrial house led by a managing director who personally oversaw a twenty-fold expansion of one production line. The recurring approach is to hold extra production capacity, serve a stable set of original equipment manufacturers (OEMs) and textile majors, and steadily shift toward value-added products - a philosophy that now sees the original magnet business splitting into separate joint-venture and subsidiary structures while the trims business scales up on its own. # Business segments Three engines at different stages - a garment-trims platform built for volume and speed, a hard-ferrite cash generator being carved into its own subsidiary, and a soft-ferrite business now run as a joint venture with a Spanish partner - each shaped by the same instinct to hold capacity ahead of demand. ## 1. Garment trims: the high-volume, high-variety engine **A dedicated factory in India’s textile hub processes over a hundred orders a day across more than fifty thousand different items, serving export clients and sustainable fashion brands.** - **Labels, tapes and transfers under one roof** - the business designs and makes woven labels, heat transfers, fabric-printed labels, and both elastic and non-elastic tapes, supplying major garment and textile companies. - **Speed is the selling point** - it handles more than 125 to 150 orders daily, runs multiple deliveries each day, and turns around samples quickly with perfect colour matching, using integrated digital solutions and advanced colour-matching systems. - **Certifications open global doors** - the unit holds TQP, Global Organic Textile Standard, Sedex and HIGG certifications, which improve its standing with international garment companies and help it reach export customers. - **Built on sustainable materials** - the focus is on value-added products using sustainable inputs, so the business positions itself for brands that need eco-credentialed trims rather than competing purely on price with the unorganised sector. - **Capacity still expanding** - a dedicated trim manufacturing facility in Tirupur, Tamil Nadu, was already undergoing capacity expansion to serve more export clients and sustainable fashion brands. ## 2. Hard ferrites: the permanent-magnet cash cow being carved out **Permanent ceramic magnets sold to tier-1 automotive suppliers, with extra production capacity held ready for demand spikes - and now being moved into a separate wholly owned subsidiary.** - **Magnets for motors, speakers and sensors** - the business manufactures hard ferrites, which are permanent ceramic magnets, and supplies them primarily to tier-1 suppliers of automotive OEMs in India and worldwide. - **Capacity built ahead of orders** - under the current managing director, hard ferrite production capacity was raised from 70 metric tonnes per month to 125 metric tonnes per month through incremental investment, and the company deliberately holds extra capacity to meet sudden customer demand spikes. - **Stable volumes, sticky prices** - supplying OEMs gives volume stability, but there is a built-in time lag between raw-material cost inflation and the company’s ability to pass those costs on to customers. - **The China-plus-one tailwind** - competition from China and the risk of declining ceramic-magnet use in electric vehicles are headwinds, but the business sees opportunity from the “China plus one” sourcing shift, the government’s PLI scheme for white goods, and trade measures that encourage import substitution. - **Structurally separated for focus** - in November 2024, DML Ferrites Private Limited was incorporated as a wholly owned subsidiary to house the hard ferrite business, with a scope that also covers rare-earth magnets, bonded magnets and a range of electronic instruments and components. ## 3. Soft ferrites: the technology play now in joint-venture hands **A commodity components business that was expanded twenty-fold and then transferred into a 50:50 joint venture with a Spanish electronic-components firm to unlock technology upgrades.** - **Cores and coils for electronics** - the business makes soft ferrite cores and coils, which are magnetic components used in electronic applications, with particularly strong demand coming from the electric-vehicle segment. - **Commodity exposure, imported inputs** - the product is a commodity and the business depends on imported raw materials, which makes margins sensitive to global price swings. - **Bought, not just built** - the entire soft ferrites manufacturing business was transferred on a slump-sale basis to a newly incorporated subsidiary, MMG Ferrites Private Limited, for a lump sum of one lakh rupees, after which PREMO S.L., a Spanish designer and manufacturer of electronic components for automotive and other industries, acquired 50% of that entity. - **Partnership unlocks technology** - the stated rationale for the restructuring was to give the business the flexibility to pursue technology upgradation and development through a strategic partnership in a separate entity, rather than inside the listed parent. # Group structure and partners **The listed parent is promoter-controlled and has just executed a clean split: hard ferrites in one wholly owned subsidiary, soft ferrites in a 50:50 joint venture with a Spanish partner, and the legacy UK subsidiary wound up.** - **Promoter-held with a seven-member board** - the promoter and promoter group held just over 72% of the equity as of March 2023, and the board comprises the chairman (a first-generation entrepreneur with interests spanning real estate, gaming and hospitality), the managing director, one additional non-executive director who is the chairman’s daughter, and four independent directors. - **Soft ferrites now a 50:50 joint venture** - MMG Ferrites Private Limited, incorporated in May 2024, received the soft ferrites business and then issued half its shares to PREMO S.L. of Spain, ceasing to be a subsidiary of Delta Manufacturing in March 2025. - **Hard ferrites in a wholly owned subsidiary** - DML Ferrites Private Limited was incorporated in November 2024 as a fully owned vehicle to hold the hard ferrite manufacturing business. - **Legacy UK subsidiary wound up** - the former foreign subsidiary, Rhine Estates Limited (previously MagDev Limited) in England, was discontinued in October 2021 and its voluntary winding-up was completed by January 2025, with the parent receiving just over thirty-one lakh rupees from the liquidator. - **Related-party ties to the wider promoter group** - related parties include Delta Corp Limited and Myra Mall Management Company Private Limited; a loan of roughly eighteen crore rupees was payable to Myra Mall as of March 2024, and shareholders have since approved further related-party transactions including an inter-corporate deposit and a loan agreement with the soft-ferrite joint venture.