Sonam Ltd is fundamentally a clockmaker - India’s largest, built from a single workshop in Morbi into a manufacturer that produces nearly everything inside a clock itself. Founded in 1986 by Mr. Jayesh Shah with a capacity of just 220 pieces a day, the company spent three decades pursuing an unusual strategy for its industry: backward integration, eventually making its own quartz movements rather than importing them, and only then expanding into adjacent products like calculators. That recurring approach - control the core component, then use the freed-up margin and manufacturing muscle to enter new categories - explains how a clock company came to list on the NSE Main Board and rebrand from Sonam Clock Limited to Sonam Limited in 2023. # Business segments A single integrated clockmaking engine with three natural revenue streams - branded consumer clocks, the internal movements and components that power them, and institutional manufacturing for other brands - plus one small adjacent bet in calculators. ## 1. Consumer clocks: the branded face of the business **Wall clocks, table clocks and digital clocks sold under four owned brands through a network of 35,000-plus retailers - this is where the company’s manufacturing scale meets the customer.** - **Four brands for four price tiers** - SONAM (the flagship since 1986), AM:PM (“Stylish. Daily.”), LOTUS (“Crafted to Inspire”) and LEXY together cover everything from Rs. 100 budget clocks to Rs. 3,000 premium designer pieces, so the company competes across the entire market without cannibalising itself. - **A portfolio built for decoration, not just timekeeping** - demand for plain wall clocks has fallen by roughly 65% in recent years as consumers treat clocks as affordable décor, so the company maintains more than 100 designs spanning LED digital, light-sensor, pendulum, musical and rotating-pendulum models. - **Distributed through a multi-tier chain** - goods flow from manufacturer to distributors to wholesalers to dealers to retailers and finally to consumers, with 150-plus distributors feeding 35,000-plus retail touchpoints across India. - **Exports to 13 international markets** - international sales go through direct importers in each market, with Iraq (roughly 38% of export revenue), Turkey, the UAE and Nepal as the largest destinations, while domestically Kerala and Tamil Nadu are the top states. ## 2. Clock movements and components: the engine inside the engine **The company makes the quartz movement - the “heart of the clock” - in-house at a scale that supplies both its own finished clocks and roughly 70% of the broader market.** - **Backward integration that changed the economics** - the company began making its own movements in 2012 and developed proprietary quartz models by 2016, creating what it calls the first “Made in India” movement and eliminating dependence on imported mechanisms. - **Capacity far beyond captive use** - the installed capacity of 240 lakh (24 million) movements per annum is more than three times the 72 lakh finished-clock capacity, which means the bulk of movement production is sold to other manufacturers as a standalone business. - **A claimed 70% market share in movement sales** - the company states it has covered 70% of the domestic and foreign market for clock movements, making it the default supplier for an industry where many smaller players have become unviable. - **Components sold as a distinct revenue stream** - beyond complete movements, the company sells cases, parts and other components to trade customers, turning its integrated value chain into a supplier business that runs alongside its own brands. ## 3. Corporate gifting, customisation and OEM: clocks made for someone else’s name **Bulk-manufactured clocks for corporate gifting, institutional orders and private-label brands - the same factories, different customers.** - **India’s largest customised-clock producer** - the company describes itself as “one of the largest customized clock producing company” in the country, producing clocks in bulk quantities priced per order for corporate and promotional needs. - **OEM manufacturing for leading brands** - alongside its own labels, the company makes clocks for third-party brands under OEM and private-label arrangements, leveraging the same integrated infrastructure that serves its consumer business. ## 4. Calculators: a small step beyond timekeeping **Electronic calculators sold under the “Check & Correct” brand - a diversification that justified the name change from Sonam Clock to Sonam Limited.** - **Four models with step-check functionality** - the range (ST-405, ST-512, ST-515 and ST-900) offers 12-digit displays, dual power including solar, and user-friendly keyboards, targeting a functional electronics category adjacent to the company’s core. - **The reason the name changed** - the 2023 rebranding from Sonam Clock Limited to Sonam Limited was explicitly to accommodate expansion into products like calculators while keeping the SONAM brand name. # Group structure and partners **A standalone, promoter-controlled company with no subsidiaries - the entire operation sits inside one listed entity.** - **No subsidiaries or associates** - Sonam Limited operates as a single company with no subsidiary or associate entities, keeping the corporate structure simple. - **Promoters hold 55.15%** - the founding Shah family retains majority control, with Mr. Jayeshbhai Chhabildas Shah as Chairman and Managing Director bringing over 35 years of clock-industry experience. - **One key related party** - Sonam Tradelink LLP, an entity influenced by a director’s relative, transacts with the company for purchase and sale of goods and receives an annual discount. - **Main-board migration and share split** - the company moved from the NSE SME Emerge platform to the NSE Main Board in April 2022, and sub-divided its equity shares from Rs. 10 to Rs. 5 face value in May 2024, resulting in 4,00,32,000 shares outstanding.