Netweb Technologies India is one of India’s leading OEMs in the space of HCS (high-end computing solutions) providing supercomputing systems, private cloud and HCI (hyper-converged infrastructure), data centre servers, AI systems and enterprise workstations, and HPS solutions from its manufacturing facility in Faridabad, Haryana.
From the day company’s acquisition in August 2016 until May 2023 the company has undertaken the installation of over 300 Supercomputing systems, over 50 private cloud and HCI installations, over 4,000 accelerator/GPU-based AI systems and enterprise workstations; and HPS solutions with throughput storage of up to 450 GB/ sec.
Business Verticals:
The company offers their products and solutions under the brand name Tyrone. The different verticals are as follows:
- Supercomputing system: Our Supercomputing systems are bespoke, and tailored with specialised hardware designs and architecture and cater to varied customer specifications. Our Supercomputing systems use our ‘Tyrone’ cluster management suite which is an integrated set of software components that can be deployed in a variety of configurations. We have deployed diverse Supercomputing systems ranging from 10 nodes to 400 nodes, catering to different requirements of our Customers, and our Supercomputing systems are scalable up to 1,000 nodes.
- Private Cloud and HCI: This offering is under Skylus brand. We offer hyper-converged capabilities i.e., combining compute, storage, and network, thereby enabling us to provide a bespoke hardware and curated software stack. Our private cloud and HCI offerings comprise (i) private cloud; (ii) hybrid cloud; (iii) cloud tools; (iv) HCI; and (v) cloud native storage.
- AI systems and enterprise workstations: Our AI systems and enterprise workstations address requirements of Supercomputing, machine learning and deep learning, and are equipped with our proprietary containerised application solution (viz., Tyrone KUBYTS) to address standalone parallel compute intensive applications.
- HPS Solutions: We provide high throughput and high IOPs storage for enterprise computation users. Our HPS solutions comprise unified storage solution (viz., TYRONE VERTA an upgraded version of Opslag FS2), cloud native storage (viz., Tyrone COLLECTIVO), parallel file system storage (viz., Tyrone PARALLELSTOR) surveillance, archival and object storage (viz., Tyrone COLLECTIVO with Fluid Input Output).
- Data Centre Servers: We have designed and built an extensive range of over 200 dual processor server models under our brand ‘Tyrone Camarero’, catering to disparate customer needs from entry level servers to highend ‘mission-critical’ servers. Our ability to design the systems platform enables us to constantly improve and customise our offerings to address specific requirements such as low rack space consumption, high energy efficiency, wide accelerator/GPU support, high in-built storage capability (up to 1 petabyte, i.e. 1 million gigabytes (1015)) and ‘all flash storage servers’ (i.e., a storage infrastructure containing only flash memory drives instead of spinning-disk drives).
- Software and services for HCS offerings: We provide private (on-premises and off-premises) cloud software stack designed for managed Kubernetes, open stack services, AI-machine learning and deep learning as a service, containers as a service, and handle complex workloads (including 5G enterprise cloud, 5G edge compute, private 5G and enterprise IT).
- It recently forayed into developing new product lines - network switches and 5G ORAN appliances.
Revenue distribution across Business Verticals:
Company Financials:
| Period Ended | Total Assets | ROE | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|---|
| 31-Mar-20 | 50.59 | 33.39% | 157.23 | 3.91 | 13.65 | 7.99 | 15.23 |
| 31-Mar-21 | 110.20 | 46.41% | 144.29 | 8.23 | 21.82 | 16.15 | 30.54 |
| 31-Mar-22 | 148.61 | 67.85% | 247.94 | 22.45 | 44.37 | 38.71 | 34.48 |
| 31-Mar-23 | 265.95 | 68% | 445.65 | 46.94 | 93.67 | 83.48 | 35.60 |
Important points:
- As at February 28, 2023, the R&D team comprised 35 members. The dedicated R&D teams are based in Faridabad, Hyderabad and Gurgaon, comprising 31, 1 and 3 members, respectively. The R&D team which has 21 engineers, 6 master’s in computer applications, 1 bachelor’s in computer application, 2 science graduates, 4 graduates in commerce/arts and 1 MBA constitutes 13.36% of our total workforce.
- As a result of our continuous R&D in data centre server development, we have the capabilities of manufacturing servers that are suitable for building private cloud solutions, Supercomputing systems clusters, and modern data centres.
Management:
- Sanjay Lodha: is the Promoter and the Chairman and Managing Director of our Company. He has been associated with our Company as a director since September 22, 1999. He holds a bachelors’ of arts (honours degree) in economics from the University of Delhi and a post-graduate diploma in business management from Apeejay School of Marketing, New Delhi. He has been leading the Strategy and Business Development department of our Company from the year 2016. He was the sole proprietor of the proprietorship, M/s Netweb Technologies since 1996 which was acquired by our Company in August 2016. He has been a part of the Governing Council of Manufacturers Association of Information Technology from 2016 to 2022 and currently serves as a Vice President with effect from June 30, 2022. He has also served on the Board of Advisors for Intel for the year 2020 and 2022.
- Navin Lodha: is the Promoter and the Whole Time Director of our Company. He has been associated with our Company as a director since September 22, 1999. He holds a bachelors’ degree in commerce from Shaheed Bhagat Singh College, University of Delhi. He leads the west zone of our Company’s sales and marketing department and has over 15 years of experience in sales and marketing. Prior to joining our Company, he was associated with the erstwhile proprietorship of our Chairman and Managing Director, M/s Netweb Technologies since 2008 until its acquisition by our Company in August 2016.
- Vivek Lodha: is the Promoter and the Whole Time Director of our Company. He has been associated with our Company as a director since April 13, 2015. He holds a bachelors’ degree in commerce from Shaheed Bhagat Singh College, University of Delhi. He leads the east zone of our Company’s sales and marketing department and has over 15 years of experience in sales and marketing.
- Niraj Lodha: is the Promoter and the Whole Time Director of our Company. He has been associated with our Company as a director since April 13, 2015. He holds a bachelors’ degree in commerce from Deshbandhu College (evening), University of Delhi (now Ramanujan College). He leads the south zone of our Company’s sales and marketing department and has over 15 years of experience in sales and marketing.
Sanjay Lodha is the brother of Vivek Lodha, Navin Lodha is the brother of Niraj Lodha.
Unanswered Questions:
- Why does their R&D team have people from MCA, BCA and commerce/arts? Why not BTech, M.Tech and PHDs?
- Promoters have a non-technical background. Does this business have any technical edge?
- What is the meaning of “we have the capability to manufacture servers”? Will they be designing their own servers like Intel, Nvidia or AMD?
- Are they competitors of Cloud service providers like Azure, AWS, Digital Ocean, etc.?
- What is the growth scope for private cloud?
- Do they have any plans to venture into the public cloud? Do they have the technical capability to run public clouds?
- What is the value addition they perform on hardware after buying the servers from Intel, Nvidia and AMD?
- Unable to find any user reviews for Tyrone cluster management suite.
IPO details:
The IPO size is ₹631 crore, consisting of a fresh issue of ₹206 crore and an offer for sale of ₹425 crore. Netweb market cap at the upper end of the price band of ₹475-500 will be ₹2,800 crore.
The fresh issue proceeds will be utilised for capital expenditure towards surface mount technology (SMT) line development, long-term working capital requirements, repaying debts, and remaining for general corporate purposes.
Technical Terms:
HPS - High performance storage
IOPs - Input/ output operations per second
HCI - Hyperconverged infrastructure.
HCS - High-end computing solutions.
Overall summary:
As of now, I could not understand if this business has any technical edge. Their NPM has never crossed beyond 10% in the last 4 years. They have used a lot of buzzwords like supercomputing, R&D, cloud, etc. but other findings are not matching what they are trying to portray. Please let me know if I have understood something wrong. I am a newbie in the tech sector.
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