SFO Technologies
The electronics manufacturing industry is a complex and ever-evolving landscape. Companies are constantly seeking ways to reduce costs, improve quality, and accelerate time-to-market. This has led to the rise of the one-stop shop, a service provider that can handle all the facets of the electronics manufacturing process, from design and engineering to manufacturing and testing.
In this competitive environment, SFO has become a leading player. In the early 1990s, the visionary brothers, Dr. Javad K Hassan, Founding Chairman and Dr. N. Jehangir, Chairman & MD, identified the need to fill the gap in India’s hardware outsourcing sector. Under Dr. Jehangir’s leadership, the company has grown from a single manufacturing site to a significant player in the industry. Mr. Althaf Jehangir, Executive Director and CEO, drives SFOs continuing success and Ms. Nazneen Jehangir, Executive Director and CEO ensures success for the Software arm, NeST Digital.
SFO Technologies differentiates itself by offering a comprehensive suite of services under one roof. This includes everything from printed circuit board assemblies (PCBAs), design and assembly to high-level assemblies that incorporate, electronics, mechanical and industrial design, sheet metal fabrication, and plastic injection moulding among others. They also invest heavily in intellectual property and cutting-edge technologies like IoT, analytics, and cloud computing to provide exceptional value to their customers.
In the following interview with Prime Insight’s “Company of the Year 2024” edition, Mr. Althaf Jehangir, Executive Director and CEO of SFO Technologies, shares his insights and valuable lessons learned on the journey to becoming a best-in-class company. Stay tuned to learn about his experiences and the secrets behind SFO Technologies’ success.
Prime Insights: What inspired you to start your company?
In the late 1980s, India was booming in software outsourcing but lacked a hardware presence. Inspired by that success, Dr. Jehangir and Dr. Hassan envisioned filling the gap. We saw an opportunity to establish a hardware outsourcing unit, which led us to establish SFO Technologies, the flagship company of the NeST group companies, over 30 years ago.
Prime Insights: What were the initial challenges faced by your business?
Starting out, SFO wasn’t a walk in the park. We encountered worker disruptions, government policies that favoured imported hardware over locally made options, and a talent pool heavily skewed towards software. It was an uphill battle on a few fronts!
Prime Insights: To begin, how is your brand-defining “trust” in the market? What stands behind its uniqueness?
At NeST Group, we built SFO on the principle of putting the customer first. That’s why we consistently hit a 95% or higher customer satisfaction rating and manage to retain 100% of our clients. We deliver top-notch Electronic Manufacturing and Design services at competitive rates, and our attrition rate is also best-in-class at just 3%. All this adds up to a rock-solid reputation for trust amongst OEMs globally. We’re proud to say SFO leads the pack when it comes to brand trust in India’s hardware outsourcing scene.
Prime Insights: What are the offerings (services or solutions)?
Starting as an electronics hardware and fiber optic manufacturing company, SFO has evolved into a ‘Vertically Integrated One-Stop Shop Solution Provider’ with expertise in both design and engineering and manufacturing services. Our capabilities span various competencies, including electronics, RF and wireless, fiber optics, mechanical, sheet metal, plastics, tool making, machining, cable and wire harnesses, magnetics, relays, and software. SFO’s plants are located in Pune, Bangalore, Mysore, Kochi, and Trivandrum, with development centers in Kochi, Pune, and Trivandrum. Our Components Park in Kochi houses plants for relays, magnetics, and transformers.
The latest innovative offering from SFO is the first private Special Economic Zone (SEZ) for manufacturing spaces in Kerala. Currently, the premises host three major factories for high-volume, low-mix manufacturing, which produce storage devices, industrial PCBAs and HLAs, and cable and wire harnesses. SFO is now in an expansion phase, with plans to establish the NeST Advanced Technology Development Centre (NATDC) and a Software Development Center within the next two years.
Prime Insights: In an age of mistrust, are you seeing an evolution in how consumers trust brands, or are they still, for the most part, doubtful?
Our experience in building brand trust with our global client base is truly remarkable. Some of our earliest customers have either designated us as a strategic partner or granted us preferred supplier status. Our transparency and flexibility in providing one-stop-shop solutions have allowed us to grow alongside these clients consistently.
Prime Insights: How did you make your mark in the industry and in the hearts of the customers?
From the beginning, SFO wasn’t interested in just serving the local market. Our first shipment, way back in 1990, went straight to a US multinational. We knew price wars wouldn’t win, so we focused on complex, high-value services. This strategy has built trust with our clients. We invested heavily in technology to stay ahead of the curve and secured a leadership position in the EMS/ODM space. Now, we cater to both high-volume and complex projects, all thanks to our focus on innovation, adaptability, and sustainability.
Prime Insights: What is a customer for you?
Our customers span from start-ups to Tier 1 OEMs, from R&D labs to space missions, both in the Indian and international markets. This demonstrates the diversity of our customer base and the depth of our commitment to them.
Prime Insights: How well are the clients connected with your brand?
Our reach goes beyond specific industries; we partner with leading OEMs across the board. If we start working with a company in healthcare, for example, and they’re also big in transportation, we often get referrals internally. That’s because we address multiple challenges for our clients—things like outdated parts, value engineering, and product development. We actively seek customer feedback throughout the process, and it builds trust. This approach, combined with our strong reputation, means we often get recommended to sister divisions within the same client organization.
Prime Insights: What are the most effective marketing initiatives or programs you have used to promote your initiatives, offerings, or services?
We secure agreements by hosting customer visits to our state-of-the-art facilities and offering a versatile one-stop-shop solution for both build-to-print and build-to-concept services tailored to our tech-savvy customers.
Prime Insights: Any new categories or changes this year?
The recent establishment of the NeST Advanced Test Development Center has transformed SFO into a complete solution provider for test engineering and automation. SFO now offers a complete suite of services, including test fixtures, equipment, software, PCB development, database logging, and result processing, catering to the diverse needs of this dynamic industry.
We have also started more work in the space sector, partnering with ISRO on many projects leveraging our niche competencies in RF and wireless, machining, and more.
Prime Insights: Have you measured how much trust consumers have in your brand?
Over the years, we have consistently maintained a customer satisfaction index of 95% or higher, which is undoubtedly a testament to the trust that customers have placed in the SFO brand.
Prime Insights: What’s the first thing that enters a consumer’s mind when they see your brand?
High flexibility, trustworthiness, and high technology are the first things that enter a consumer’s mind when they see our brand.
Prime Insights: What is the future plan connected with the brand?
Leverage the Make in India initiatives of the Government of India to increase exports and accelerate growth in all our markets. Collaborate with various government laboratories in India to design and manufacture equipment for import substitution, leveraging our exceptional expertise from concept to prototyping and manufacturing, a rarity among our competitors.
Prime Insights: How has your journey as an entrepreneur been?
Reflecting on my tenure of over a decade as CEO and Executive Director, I am proud to say that I have successfully developed an aggressive business growth model. It’s brought us global partners, kept us agile, and built a strong performance culture, all while staying true to NeST’s core values.
Prime Insights: What do you hope to accomplish within the next year from a personal as well as professional point of view?
As previously mentioned, my priority for the next year will be to ensure that both SFO and NeST Group fully capitalize on the opportunities presented by the Make in India initiatives. This will involve implementing execution strategies aimed at achieving accelerated growth.
Prime Insights: A piece of advice for young entrepreneurs.
Great ideas are only the first step. A true entrepreneur builds the whole system. It’s not just about the product—marketing, sales, finances, legal stuff—it’s all crucial. Young founders should consider partnering with experienced players to fill any gaps. Sharing profits is a small price for shared knowledge and reduced risk.
Prime Insights: Feedback from your end would be really appreciated. Your words matter for us!
It’s fascinating to share SFO’s journey with Prime Insights. Digital and print media both serve readers well, and your commitment to both is inspiring. We believe the future belongs to those who share their success, and magazines like yours play a vital role. We wish you continued success in your future endeavors.
