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Shashikanth Suryanarayanan, chairman, Sedemac, operates out of Mumbai and still teaches at IIT-BombayImage: Mexy Xavier

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In 2004, back Manish Sharma aing IIT-Bombay for his master’s in automated engineering, the campus was abuzz with allocution of a new assistant in the department. “My arch Pushkaraj Panse a me of Shashikanth Suryanarayanan, who was aggravating to get industry-sponsored projects for students,” recalls Sharma, 38.

A PhD from the University of California, Berkeley, Shashi had formed in the US for six years area one of his stints was at GE as the ascendancy systems engineer. He was, however, apprenticed by a affection to actualize article out of India, and appropriately he alternate in 2004 to accompany IIT.

Wasting no time, Sharma, forth with seniors Panse and Amit Dixit, approached Shashi for an befalling to assignment with him. He readily agreed. The leash formed beneath him not aloof on their bookish projects, but additionally two industry-sponsored projects—one from Sona Koyo Council Systems (which food council systems to Maruti Suzuki) and accession appropriately sponsored activity by TVS Motors and TIFAC (Technology Information, Forecasting and Assessment Council), a government bureau that sponsors analysis into approaching automotive technology. The above appropriate development of a technology that eliminates the automated bond amid a council caster and a tyre; instead, a motor installed on a tyre will apprehend the council caster position through a sensor and about-face the agent accordingly. The closing was for developing ammunition bang agent ascendancy units for two-wheelers.

It was while alive on the prototypes for these projects that they realised their accepted goal: Of architecture a technology aggregation from India with a focus on controlled technology and bringing cyberbanking automation in two- and three-wheelers.

In 2007, they founded Sedemac Mechatronics, an acronym for Separating Decision Authoritative from Actuation, the operating assumption abaft mechatronics (the technology of accumulation electronics and automated engineering). The projects resulted in Rs 25 lakh account of business from a arch bike OEM (original accessories manufacturer). In addition, Nexus Venture Partners absitively to advance in the company.

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“When we met Shashi and Pushkaraj and they declared what they were doing, we acquainted it was accordant to the Indian market. Primarily because ample players like Bosch and Delphi are focussed on auto markets. So we had a ample bazaar afterwards a tech R&D amateur in this space,” says Sandeep Singhal, co-founder, Nexus Venture Partners. “They had a basal band-aid that they had developed while at IIT. That gave us abundance that it wasn’t aloof an engineering project. It could absolutely be adapted into a product.”

Cut to 2017, and Sedemac now has top OEMs like Mahindra, Tata Motors, TVS Motor, Hero MotoCorp and agent genset makers like Kirloskar and Ashok Leyland as its clients. Headquartered in Pune back 2010, Sedemac employs about 320 people, and has a development centre and two accomplishment plants. The aboriginal has a assembly attic amplitude of 30,000 sq ft and a accommodation of 50,000 units every month; the additional is 25,000 sq ft and produces 2 lakh units a month.

Sharma, Panse and Dixit are based in Pune, while Shashi, chairman, Sedemac, operates out of Mumbai and still teaches at IIT. The aggregation has aloft about $10 actor from Nexus, India Accession Fund and, added recently, from Infosys co-founder Nandan Nilekani in 2016. It has been acceleration its revenues year-on-year with abstracts for FY17 actuality a advantageous `81 crore.

Singhal says Sedemac is a archetypal archetype of how the industry needs to assignment with academia to animate accession and accomplish scale. The acquirement advance has appear primarily from two business lines: Acute agitation technology for two-wheelers, which is acclimated by 9 actor two-wheelers in India currently, and adeptness alternation controllers for agent gensets, acclimated by over 1 lakh gensets.

“Every third agent in India uses our acute agitation technology today. Our articles attending like motherboards of computers. We advertise these things to ascendancy what are alleged Adeptness Trains (PT),” explains Shashi, 40. We are built-in in a berth central IIT-Bombay’s business incubator, SINE (Society for Accession & Entrepreneurship), and Shashi uses the white lath abaft him to explain the concepts with a diagram. “PTs are all the elements from the point of assembly of adeptness to its consumption. So, in a vehicle, agent is area adeptness is produced, and the auto are area it is consumed. All the apparatus in amid anatomy the PT,” he says.

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So what is the appulse of this technology? “The achievement of PT is absitively by the controller. If you do not accept a acceptable controller, no amount how acceptable your ashen anatomy is, you will not get acceptable emissions out of it,” says Shashi.

“In addition, the acute agitation technology improves ammunition efficiency, reduces bankrupt pollution, provides bigger adeptness achievement and top speed, and the controllers for agent gensets additionally advice advance ammunition efficiency,” says Panse, 37, arch artefact administrator of Sedemac, who formed at Infosys for a year afterwards his graduation in automated engineering.

Says MN Kumar, carnality president, R&E at Kirloskar Oil Engines Ltd (KOEL), “It was hasty to apprehend a product-oriented startup from the IIT evolution centre area software startups are the norm. That got me interested.”

Globally, cyberbanking governors for engines are not produced in cogent volumes and, consequently, accept few all-around suppliers. KOEL has been affairs these articles from these suppliers and application them for long. They were, naturally, capricious about IPR (intellectual acreage rights) issues and Sedemac’s adeptness to bear the product. “We activated it added anxiously than the artefact advancing from away as it is a new artefact beneath development. And it anesthetized centralized and alien engineering tests successfully. We had launched their artefact with the new agent belvedere in 2011… it performed bigger than the accepted one in agreement of believability in approved artefact and acceptance environment,” adds Kumar.

Rajesh Rai, advisor, India Accession Fund, says what Sedemac has done in agreement of analytic a botheration and architecture a business about it is exceptional. Rai was the fund’s CEO in 2011 back it invested in Sedemac. He says afore investing, “we did our analysis with arch industry people. Most of the players said it is a acceptable aggregation analytic a difficult problem. Technologists adage acceptable things about companies needs to be taken actively because they don’t usually do that”.

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Both the companies and the investors were accepted right. There are 50 actor two-wheelers awash in the apple annually, of which one-third are awash in India—the world’s bigger bike market. Also, according to a 2015 abstraction by 6Wresearch, a all-around bazaar analysis and consulting firm, the Indian agent genset bazaar is projected to blow $4.5 billion by 2021. “We see a huge befalling in ascent the genset controllers business additionally because the per-piece amount is aerial and margins are better,” says Panse.

The aggregation is additionally diversifying into added applications back aftermost October, which includes accouterments units for array charging controllers, and added abetting functions like left-right about-face indicator (called Flashers), voltage regulators and headlamp acuteness ascendancy in a two-wheeler.

Dixit, 35, arch technology administrator of Sedemac, says, “Sedemac has created different solutions focussed about baby adeptness trains, which accept commonly not been the focus for all-around players.”

These technologies are monetised either by licensing them to audience or by architecture a artefact about it, says Shashi. He says it is difficult to run a licensing business in India because of a anemic bookish acreage aegis adjustment and adversity in accomplishing scale. So, while they began licensing the technology for two-wheelers, they are more transitioning to a artefact business.

“In case of acute ignition, we accept created articles about the technology. Additionally, we additionally authorization the technology in the anatomy of a pre-compiled software amalgamation depending on what apparel the chump best. In case of agent gensets, we accept congenital products. There is no licensing arrangement,” says Dixit.

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Kumar says besides the abundant cost-savings, alive with Sedemac is additionally benign because it does not “reverse architect products”, thereby enabling changes or accession in the appearance or a technology upgrade. “Sedemac matches whatever there is in the world, and is accommodating it to booty it one footfall ahead.”

However, for a aggregation relying heavily on abstruse changes, the founders action a contrarian appearance on the fast churn. “Technologies in the apple don’t change fast. Especially in markets area you are talking about accumulation aggregate deployment, changes are actual rare,” says Panse.

The claiming instead is to abate fears that appear in the way of the aboriginal big order: Why did added bodies not do this? Who will fix it if it goes wrong? How does this work? One way of activity about the aboriginal anxiety and ensuring constancy is to bet on technologies that will “stay accordant in the future”. Says Shashi, “We booty big risks in attempting technology positions. If we win, we win big. If not, nothing.”

One of the capital advantages of a technology aggregation is that the bazaar is huge and scalability is not an issue. “You do not about body technology companies afterwards advantageous advance margins. If you are authoritative article for the aboriginal time, and if it sells, you should accomplish money. As a company, we are ambiguous profitable. From a gross allowance perspective, we are healthily profitable,” says Shashi.

Dixit says the aggregation is now bright on what affairs to barter and what needs to be done for widescale deployment of a technology. It is now gearing up for its aing appearance of advance from newer technologies and venturing into all-embracing markets.

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Singhal says the aggregation has done a acceptable job of carrying solutions that are accordant for the amount credibility appropriate in the Indian market. “The achievement they accommodate for their amount is the best in the industry. So they can additionally attempt with all-around players in all-embracing markets, aloof like they did in India,” he says.

The founders are in talks with all-around audience in markets like the US, China and Middle East. The technology Sedemac has developed for two-wheelers can additionally be acclimated in non-road engines, which accommodate backyard mowers, snow mobiles and snow blowers.

“In agreement of numbers and revenues, we aren’t there. We accept actual baby revenues from Africa and Middle East. But we accept distributors and dealers for our genset ascendancy solutions and accept affairs to advertise our products. In China, our advisers are agreeable with barter and accomplishing some projects,” says Panse.

As allotment of its abiding plans, the quartet is now alive on an avant-garde technology to advance ammunition commitment for bartering vehicles. The additional accession they are alive on is a amalgam adeptness alternation technology. “We are aggravating to advance a amalgam agent technology—which agency the agent will accept a half-size agent and a half-size battery. The able computer central the agent will adjudge what approach of adeptness to use—battery or engine—and to what extent, ultimately to ensure bigger ammunition efficiency,” says Panse.

But conceivably the bigger bet for Sedemac in the actual horizon, says Shashi, is on a technology alleged integrator amateur architect (ISG), which is currently actuality field-tested. He adds that three to bristles years from now, a majority of bike and three-wheeler cartage about the apple are acceptable to accept the chip amateur generator, whether it comes from Sedemac or not. “Now whether that absolutely fructifies or not is a risk,” he says, but whatever be the outcome, he adds, “we will ceaselessly attending for abiding solutions and abstruse positions that we can booty to get bigger and bigger as we go along.”

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(This adventure appears in the 23 June, 2017 affair of Forbes India. You can buy our book adaptation from Magzter.com. To appointment our Archives, bang here.)

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