Forward and Onward

Jigar Mehta, Managing Director, Onward Tech in conversation with Minu Sirsalewala, Executive Editor, Dataquest, elucidates why Onward Technologies has placed its bets on a pure-export business strategy, the no-IP stance and on that big chunk of huge R&D contracts of global companies that are waiting to be tapped. And how being a young company is helping with advantages and challenges unique to that stage. Global Vision, Local Talent: Onward Technologies' Strategic Pivot to International Markets"

- Minu Sirsalewala ,Pratima H

Onward Technologies has undergone a significant shift since 2016, focusing on 3 core verticals. What prompted this strategic decision? The strategic decision to focus on 3 core verticals and pursue an international market was driven by a confluence of factors. Upon assuming leadership, we prioritized the transformation from a family-run business to a professionally managed organization.

A strategic review identified a high-growth market with substantial outsourcing budgets and significant room for expansion. While our existing mechanical engineering business in Pune served a valuable purpose, we agreed to pursue a more ambitious strategy. This involved pivoting entirely towards the USA and European markets. In 2016, industry analyst Zinnov had projected the global addressable R&D services market to reach USD 289 Bn by 2020-USA & EU-based companies being the largest spenders. Our pivot to those markets offered compelling growth drivers and has been instrumental in propelling Onward Tech onto a new trajectory, positioning it for sustained growth in the global marketplace.

What happened next?

Our execution strategy was multifaceted. We prioritized building a robust export business, with the planned phase-out of domestic operations following a predetermined growth trajectory. This process was instrumental in uncovering exceptional talent within the organization. These individuals, now holding key leadership positions in the USA and Europe, continue to be the cornerstones of our success.

The strategic shift has yielded significant financial rewards. We have achieved a strong and consistent revenue stream, crossing INR 470 Crore in FY 2024 with double digit EBITDA margin, while reaching a market capitalization of INR 1000 Crore+ for the first time.