Industrial Automation Magazine India

RS Components has six operating brands, each with its own niche and target market

Published on : Thursday 05-10-2023

Shiv Bhambri, Country Manager, RS India.

What is the story in brief of RS Components and the way it has evolved into a company with a global footprint over the last 80 years and more?
RadioSpares was established in London in 1937 with a commitment to provide an unrivaled replacement parts service. Their spare parts catalog proudly declared "a substitute for every task, along with a 24-hour service!" From its earliest days, RS has maintained a steadfast dedication to customer satisfaction, well before it became a popular trend. By 1954, their product range expanded beyond radio and television spares to encompass various industrial products. In 1967, RadioSpares went public on the London Stock Exchange, becoming Electrocomponents plc, and in 1971, it adopted RS Components as its trading brand.
 
Throughout the 1980s and 1990s, RS underwent both organic and inorganic growth on a global scale, establishing warehouses worldwide. Pioneering innovation, RS became the first distributor in the industry to launch a website in 1998. In 1999, Electrocomponents acquired Allied Electronics in the United States, and in 2007, it relocated its operations to a new warehouse and offices in Fort Worth, Texas.
 
When RS Components started operations in India in 1994 (nearly 3 decades ago) it was a business model much ahead of its time.We have proven our ability to outperform consistently with the help of innovation & process enhancement in our unique business model, especially in a fragmented unorganised market like India. We have a long history of delivering first-class customer experiences through excellent product quality, wide product range, speed of delivery and unmatched customer services. A receptive market with an opportunity to work with a wide spectrum of customers across various industries and technologies has fuelled an inherent passion and determination to take RS India to greater heights.
 
RS's dedication to innovation persisted, culminating in the launch of DesignSpark in 2010—a global online technical community for engineers with over 1.3 million members. DesignSpark offers an array of free engineering tools and resources.
 
In 2018, Electrocomponents acquired IESA, a supply chain solutions business specialising in MRO (Maintenance, Repair, and Operations). This marked the first acquisition since 1999, when Allied was acquired. Since then, Electrocomponents has also added Monition, Needlers, Synovos, John Liscombe, and Domnick Hunter-RL to its portfolio.
 
In May 2022, Electrocomponents plc rebranded as RS Group plc and initiated the process of uniting all RS Group businesses under a single brand, aiming for a unified identity of 'One Brand, One Team, One Culture.'
 
In November 2021, the Group unveiled its global 2030 ESG action plan, titled 'Making Amazing Happen For A Better World’, and introduced a thought leadership platform centered on sustainable engineering.
 
Operating with such a large number of products from thousands of suppliers, how is the company managing the inventory and distribution logistics? Warranty issues?
RS India is part of RS Group plc, a leading global industrial product and service solutions provider for customers who are involved in designing, building, and maintaining industrial equipment and operations, safely and sustainably.
 
We stock more than 700,000 industrial and electronic products, sourced from over 2,500 leading suppliers, and provide a wide range of product and service solutions to over 1.2 million customers. With operations in 32 countries, we trade through multiple channels through a network of 17 distribution hubs and ship over 60,000 parcels a day.
 
We support customers across the product life cycle, whether via innovation and technical support at the design phase, improving time to market and productivity at the build phase, or reducing purchasing costs and optimising inventory in the maintenance phase. We offer our customers tailored product and service propositions that are essential for the successful operation of their businesses and help them save time and money.
 
RS Components has several operating brands. What is the basis of this categorisation and their respective niche?
RS Components has six operating brands, each with its own niche and target market. The basis of this categorisation is the type of products and services offered by each brand, as well as the target audience.
 
Here is a brief overview of each of the brands:
RS
RS is the leading omni-channel provider of industrial and electronics products and solutions to industrial customers across EMEA, Americas and Asia Pacific. With a broad product range and high stock availability, we offer easy ordering, same-day dispatch and fast, reliable delivery, backed by industry expertise and technical support.
 
RS PRO
RS PRO is our own-brand product range of more than 80,000 high-quality, competitively priced industrial products and electronic components.RS PRO offers customers a choice where the combination of quality, performance and price create exceptional value. All RS PRO products and components are backed by the RS Seal of Approval, representing leading industry standards for audit, inspection, test and certification.
 
OKdo
OKdo is a global technology business focusing on single-board computing (SBC) and the Internet of Things (IoT). It provides end-to-end support for all SBC and IoT segments, spanning makers, entrepreneurs, industrial designers, educators and reseller partners. It brings SBC and IoT customers the latest products, solutions and ideas to inspire and enable them to create technology that makes life better.
 
DesignSpark
DesignSpark connects millions of makers, innovators, students, and design engineers from around the world with a collaborative space and design resources to improve productivity.Our award-winning software, model libraries, tech updates, inspiration and learning help fire up the ordinary and ignite the extraordinary.Our purpose is to educate, influence, promote and enable engineers to design responsibly, for a better world #ActivistEngineering.
 
RS Integrated Supply
RS Integrated Supply provides outsourced stores management and procurement services that drive sustainable productivity and reliability for MRO supply chains. Our digitally enabled, value added services deliver consolidation, standardisation and total cost efficiencies through continuous improvement, process, and product innovation. The geographical reach of our operations enables us to provide consistent services to multi-site clients across North America, the UK, Europe and globally.
 
RS Safety Solutions
RS Safety Solutions is our specialist provider of personal protective equipment (PPE), safety and hygiene products aimed predominantly at the industrial and food manufacturing sectors. We supply high-risk hand protection and PPE products to industrial blue-chip customers while also offering a range of specifically designed PPE products for the food manufacturing industry.
 
How are the emerging trends like decarbonisation of electricity, electrification of mobility, etc., impacting the business of RS Components?
The emerging trends of decarbonisation of electricity and electrification of mobility are having a significant impact on the business of RS Components. We expect growth to be driven by:
Green Energy/Renewable Energy Solutions: With increasing concerns about climate change, the demand for renewable energy solutions is likely to grow. The electronics industry will play a significant role in developing and producing energy-efficient devices and infrastructure, including solar panels, wind turbines, electric vehicle technologies, and energy storage systems.
 
Internet of Things (IoT): It is anticipated that the demand for IoT devices will increase as more industries and consumers recognise the potential benefits of a connected ecosystem. Smart homes, wearables, industrial automation, and smart cities are just a few examples of areas where IoT will play a crucial role.
 
Electrification in automotive & transport and use of AI: Electrification in the automotive and transport industry, coupled with the integration of Artificial Intelligence (AI), is shaping the future of transportation. Electric vehicles (EVs) have gained significant traction in recent years, and their adoption is expected to accelerate in the near future. They are expected to continue advancing and driving innovation in areas such as autonomous vehicles, robotics, natural language processing, and personalised customer experiences. The demand for AI-enabled devices and systems will likely grow as organisations leverage these technologies to enhance efficiency, decision-making, and automation.
 
5G Connectivity: Deployment of 5G networks is set to revolutionise communication and enable faster, more reliable connections. It will unlock new possibilities for the electronics industry, facilitating advancements in areas such as autonomous vehicles, virtual reality, augmented reality, and remote healthcare. The demand for devices that can take advantage of 5G capabilities, including smartphones, IoT devices, and smart infrastructure, is expected to rise.
 
We expect to see sustainability become a critical element of technology development.
 
RS Components came to India in 1994 in the early days of liberalisation. How have the operations scaled up since?
RS Components came to India in 1994, just as the country was opening up its economy to foreign investment. The company saw an opportunity to provide Indian businesses with access to a wide range of high-quality electronic and industrial components.
 
Over the last3 decades, RS Components has scaled up its operations in India significantly with major investments into human resources, state of art distribution centres to establish a strong supply chain, training & development of existing manpower, etc. The company has a robust system with capability to handle over 20000 orders monthly, delivering products in 3-4 working days across the country.
 
Today, RS Components is one of the leading distributors of electronic and industrial components in India. The company provides a wide range of products and services to businesses of all sizes, from small startups to large multinational corporations. RS Components is committed to helping Indian businesses succeed, and the company is confident that it will continue to grow and expand in India in the years to come.
 
How important is the Indian market and the percentage revenue contribution to the group? Is there any sourcing and procurement happening from India?
Indian market performance is covered under APAC, which contributes 9% of overall RS Group revenue. With consistent double digit growth in sales performance over the last few years & an overall booming economy, India happens to be an important market for the Group.
 
RS PRO is our own-brand product range of more than 63,000 high-quality, competitively priced industrial products and electronic components. RS PRO offers customers a choice where the combination of quality, performance and price create exceptional value. All RS PRO products and components are backed by the RS Seal of Approval, representing leading industry standards for audit, inspection, test and certification.
 
Multiple products under RS Pro brand are sourced from India for the global market and India ranks 5th when it comes to the sourcing contribution under RS Pro. We also have a dedicated function/role that operates from RS India HO that works on identifying and collaborating with Indian brands that can be a part of RS Global range under RS Pro.
 
Do you see the positive impact of PLI schemes and the Semiconductor policy in India?
As an electronics component distributor, we are very positive about the impact of the PLI schemes and the Semiconductor policy in India. These initiatives have the potential to significantly boost the domestic manufacturing of electronics and semiconductors in India, which will create jobs, attract investment, and boost exports.
 
The PLI schemes offer financial incentives to companies that invest in manufacturing electronics and semiconductors in India. This will help reduce the cost of manufacturing in India, making it more competitive and reduce import dependencies. The schemes also provide support for R&D and innovation, which will help to develop a more sophisticated and competitive electronics and semiconductor industry in India.
 
India has become a key market for global companies due to its rapid economic growth and favourable policies. The country's domestic electronic goods production has grown significantly, with a CAGR of 17.9%. The electronic manufacturing industry is expected to quadruple by 2026 to $300 billion. The government is focusing on infrastructure development and attracting large-scale investments in the electronics value chain. India's electronics sector is changing due to new technologies like artificial intelligence, machine learning, and the internet of things. Initiatives such as Production Linked Incentive (PLI), Promotion of Manufacturing of Electronic Components, Semiconductors, Modified Electronics Manufacturing Clusters (EMC 2.0), Semiconductor & Display Fabs Scheme, 100% FDI under the automatic route for electronics manufacturing, Electronics Development Fund (EDF), rationalisation of tariff structures, and exemption from Basic Customs Duty on capital goods are aimed at fostering innovation and establishing India as a global value-add player in the electronics manufacturing market.