Aditya Infotech IPO

Aditya Infotech Limited offers a comprehensive range of advanced video security and surveillance products, technologies, and solutions for enterprise and consumer segments under their 'CP PLUS' brand. Its product offerings include HD analogue cameras, network video recorders (NVRs), biometric products, access control systems, and more, incorporating cutting-edge technologies such as AI, machine learning (ML), and the IoT for smart homes and security systems.

The company's business is primarily classified into 2 segments: manufacturing and trading activities. Manufacturing includes the manufacture and sale of CP PLUS products and the provision of after-sales services, while trading activities are limited to the distribution of Dahua products.

The company operates from a manufacturing facility in Kadapa, Andhra Pradesh, with an installed capacity of 17.20 Mn units per annum as of March 31, 2025. Spread over an area of 204,157.36 sq ft, the facility includes advanced manufacturing infrastructure such as high-speed SMT lines, assembly lines, and stringent quality control equipment. They currently operate 10 strategically located warehouses spread across the country.

The company has a market share of 20.8% in FY25. It offers over 2,986 SKUs and continuously innovates its product line, including AI-powered solutions and surveillance services through its ‘OnVigil’ brand. Its products are sold across more than 550 cities in India, supported by a robust distribution network of over 1,000 distributors and 2,100 system integrators. The company operates 41 branch offices and 13 RMA centres nationwide, ensuring a broad and efficient reach.

The company has a significant relationship with Dahua Technology for exclusive distributorship in India. A significant portion of their revenue from operations is generated from the sale of products supplied by Dahua. In 2017, the company entered into a joint venture agreement with Dixon Technologies (India) Limited to expand manufacturing operations. On September 18, 2024, they acquired the remaining 50.00% equity shares in AIL Dixon Technologies Private Limited from Dixon Technologies.

As per Frost & Sullivan, the global video surveillance market is projected to grow at a CAGR of 10.36% in revenue terms between FY25 and FY30, reaching USD 58.8 Bn by FY30 from USD 35.9 Bn in FY25. India, in particular, stands out as one of the fastest-growing markets, with the market size expected to nearly double from INR 106.2 Bn in FY25 to INR 227.4 Bn by FY30, at a strong CAGR of 16.46%. Volume-wise, camera units sold are expected to grow from 3.97 crore to 7.46 crore units in the same period. This growth is driven by government initiatives, regulatory mandates, and increasing adoption in private sectors such as retail, BFSI, healthcare, and residential segments.

The company’s early move into AI-based and IoT-enabled smart surveillance systems (OnVigil, AMS, HMS) aligns it with market trends favouring intelligent, cloud-based solutions. The growth in IP cameras, expected to grow at a 20.49% CAGR in revenue, is particularly advantageous for the company, as it is already supplying high-end IP-based products. Also, the regulatory push from MeitY for STQC-certified locally manufactured products (effective April 2025) creates a short-term moat for Aditya Infotech, which has already received STQC certification for some product lines, allowing it to capture market share from importers and tap into government procurement opportunities under the Public Procurement Order.

Now, Aditya Infotech Ltd is launching its initial public offering (IPO), which consists of a fresh issue worth up to ₹500.00 crores and an offer for sale worth up to ₹800.00 crores. The total issue size of the IPO is ₹1,300.00 crore. Its shares will be listed on the NSE and BSE.