Aztech Electronics business comprises the design and manufacture of electronics, communications equipment and LED lighting products. With its
vertically integrated manufacturing plant in Dong Guan, China, together
with 7 worldwide sales offices and 4 R&D centres, Aztech provides services
of ODM /OEM , Contract Manufacturing and Retail brand distribution.
With 25 years of experience in the electronics
business, Aztech has built a strong reputation
for its OEM /ODM , Retail Distribution and
Contract Manufacturing business in the
broadband, home networking and LED lighting
In FY2009, the electronics sector continued to be the main revenue
contributor to the Group’s revenue with S$180.10 million (representing
64.3% of Group Revenue). Grounded with strong operating fundamentals,
we were able to mitigate the impact of the adverse operating environment
and remained profitable.
We were able to sustain our performance largely because of our team
of competent and committed staff and the set of measures that were
Focusing on Profitable Markets
Aztech continued to work closely with telecommunications companies and
Internet Service Providers (ISP) on the manufacturing of ADSL modems.
Particularly, in Singapore, we supplied to the largest telco, SingTel, our
4-port ADSL modem (Aztech DSL1000ER) for their very successful mio
TV package that allows home users to watch video via Internet Protocol
Contract manufacturing is a key part of our electronics business. When
securing manufacturing contracts for Aztech ADSL, 3G to Wireless Routers
and HomePlugs, we looked to find products that require higher value-added
manufacturing and tap on our state-of-the-art manufacturing
facilities, as this enabled us to yield a better profit margin. Sustaining our
existing working relationship with Etisalat (UAE), SingTel (Singapore), Globe
Telecom (Philippines) and TTNet (Turkey) was also our top priority.
Aztech Brand Products
Aztech products reach more than 30 countries worldwide, with Europe,
USA and Asia Pacific constituting the largest markets. In the year, to
counter the depressed prices for electronic products in the recession-struck
countries, we focused our efforts on selling Aztech brand products
through our distributors in markets such as Singapore, Malaysia, Hong
Kong, Thailand, Vietnam, Pakistan, Sri Lanka, Saudi Arabia, UAE, Turkey,
Israel and Latin America. This strategic move enabled us to leverage on the
growth of these markets to broaden our customer base as well as provide
us with better profit margin.
Complementing this strategic move, the marketing efforts in these
countries were intensified to create greater brand awareness. One
example of the marketing activities was the sponsorship of events targeted
at tertiary students, who are potential customers deciding on the purchase
of home networking and broadband devices.
Notably, our HomePlugs which allow users to transfer data via powerline
and our 3G Wireless routers were very popular as more users seek to
create and share their own WiFi hotspot when they are outdoors.
In the year, our simplified Aztech HW550-3G Wireless-N Mobile Broadband
Router received many awards and good reviews with its user-friendliness
and compatibility with 3G/3.5G USB modems in the market. Some
comments and accolades included:
“3G sharing… It’s a great concept. Do get one if you can.” - PC.com
“The Aztech HW550-3G is simply a fantastic device; it will be tough to
find something as flexible and as powerful” – MAX IT Magazine Max Value
“We love the Aztech HW550-3G wireless router for its ability to support
mobile HSPA modem.” – CHIP Magazine Recommended Award
“Aztech came in at the right time with a proper 3G USB broadband router
that everyone has been eyeing for.” - OC Workbench Best Value Award
Other products launched in the year include:
- Aztech HL110E: World’s First Eco-friendly 200Mbps HomePlug AV
- Aztech HL106E – World’s Smallest 85Mbps HomePlug Turbo
Towards the end of the year, we ventured into the design and manufacture
of energy-saving, long-lasting and eco-friendly LED lighting products.
The move for Aztech’s new subsidiary, AZ E-lite Pte Ltd to design and
manufacture LED lighting equipment – named Aztech LED Luminaries– is driven largely by the bright potential LED lighting has on both the
business and natural environments. According to market research, LED
light presents a lead market advantage in the next 5 years as it replaces
incandescent lighting progressively by 2016. As part of our R&D efforts,
we have invested in a Light Spectrum Analyser to analyse the amount
of light from light source, as well as analyse colour rendering and power
requirement of the light fitting.
Meeting our Customers’ Needs
Although ADSL products continue to be Aztech’s best-selling product for
OEM/ODM and many telcos and ISPs continue to use Aztech’s design, we
sought to stay ahead of the market demands through our Research and
Development (R&D) efforts.
Riding on the increasing adoption rate of Next Generation Network (NGN) in
many countries, the Group embarked on fibre optic modem development in
collaboration with Agency for Science, Technology And Research (A*STAR).
The research collaboration seeks to develop a 2.5Gbps Gigabit Passive
Optical Network (GPON) system for the Next Generation Fibre-To-The-
Home (FTTH) Network, which will greatly enhance our core capabilities in
broadband and home networking products.
Other ongoing research efforts include the design of cost competitive
products for broadband communication and home networking devices and
the incorporation of GREEN feature into our products. We have successfully
increased the communication speed of our home networking devices
to 1Gbps. We have also explored the use of power efficient electronic
component and eco-friendly material, as well as the reduction of power
consumption when the product is not in use.
Improving on Current Processes
With the objective of increasing productivity and improving quality, Aztech
installed robotic arms at the plastic injection facility in Dong Guan, China.
This effectively enabled the automatic removal of parts from the machine
at a set parameter, giving consistent output as compared to manual
removal by operator.
In line with Aztech Green Movement, we have installed a heat exchange
system to provide hot water for the dormitories instead of burning diesel
for water heating. This is both cost effective and environmentally friendly.
Streamlining Operating Costs
As part of the effort to counter the slowdown in economy, we kept the
manpower lean and stayed very focus on our objectives. For instance,
R&D activities were streamlined in our R&D centres in Singapore and China to ensure the teams are focused in their respective core competency
and no duplication of work is carried out. The R&D has also been mandated
to give priority and invest the resources on design and/or development
tasks where the sales interest from prospective customers was high and for
secured orders. These moves are targeted to improve R&D’s efficiency and
input in the long run.
In addition, we strived to keep the staff turnover low so that corresponding
training costs could be kept to a minimal. To address the issue, we worked
to improve the factory workers’ welfare by organising monthly birthday
parties, providing more recreational activities and installing a hot water
system in their dormitories.
Although the economy looks to be on the recovery path, we will continue our
strategic efforts in the various areas. In addition, we actively seek to bring
about greater product breakthroughs and innovations to power growth.