About Aditya Infotech Limited

BUSINESS OVERVIEW

Aditya Infotech Ltd. offers a comprehensive range of advanced video security and surveillance products, technologies, and solutions under the ‘CP PLUS’ brand, catering to both enterprise and consumer segments. The company also delivers fully integrated security systems and Security-as-a-Service (SaaS), addressing the needs of sectors such as banking, insurance, real estate, healthcare, defence, manufacturing, education, hospitality, retail, industrial, and law enforcement.

Business operations are divided into:

• Manufacturing and trading of CP PLUS products and after-sales services.

• Trading and distribution of products from Dahua Technology.

The CP PLUS brand, acquired in 2014, focuses on making cost-effective surveillance products and services accessible across India.

The product portfolio includes:

• AI and ML-powered edge-based analytics, developed by an in-house R&D team.

• IoT-integrated solutions, cloud-based services (e.g., HMS and AMS), and a wide range of hardware including HD analog cameras, IP cameras, DVRs, NVRs, biometric devices, body-worn and thermal cameras, routers, and accessories.

• Centralized AI-IoT-based surveillance services under the ‘OnVigil’ brand.

Additional offerings include field management services, EV station management, IoT automation, door/access control systems, and customized security solutions. The company has also introduced CP PLUS AI, a solution that enhances traditional CCTV with intelligent video analytics.

As of Fiscal 2025, products were sold across 550+ cities and towns in India, supported by:

• 41 branch offices, 13 RMA centers, and a distribution network of 1,000+ distributors and 2,100+ system integrators.

• 69 exclusive CP PLUS Galaxy stores and regular training programs and workshops for channel partners and installers.

To enable efficient inventory and logistics, the company operates 10 strategically located warehouses in major hubs such as Noida, Bhiwandi, Kolkata, and Chennai.

In alignment with the ‘Make in India’ initiative, the company emphasizes domestic production. The Kadapa manufacturing facility in Andhra Pradesh has an installed capacity of 17.20 million units per annum and features SMT lines, advanced assembly infrastructure, and stringent quality controls. Operations are supported by backward integration to enhance supply chain efficiency and profitability.

A dedicated R&D facility in Noida with 86 professionals (as of March 31, 2025) drives innovation, product development, and customer-centric enhancements.

The company maintains a joint service arrangement with Dahua Technology, acting as the exclusive distributor in India and sourcing a significant share of revenue-generating products from Dahua.

To strengthen manufacturing capabilities, Aditya Infotech formed a joint venture with Dixon Technologies in 2017. In September 2024, it acquired Dixon’s stake, converting the partnership into full ownership, while continuing to collaborate for supply chain optimization and international expansion.

The company adheres to ESG practices, including e-waste recycling, wastewater treatment, and regular internal/external audits to manage environmental impact and operational risks.

As of March 31, 2025, the company had 1,274 employees, many of whom are trained and specialized employees with experience in engineering, IT infrastructure and technical aspects of the operations.

INDUSTRY ANALYSIS

India Video Surveillance and Security Market: Industry Overview

The video surveillance and security market in India is undergoing a major transformation, driven by the integration of cutting-edge technologies and the convergence of security systems across platforms. This evolution is reshaping the industry by making surveillance smarter, more responsive, and aligned with the country’s growing and diverse safety requirements.

The adoption of CCTV cameras has surged significantly, spurred by historical security threats like the 2001 Parliament attack, 2008 Mumbai attacks, and more recent incidents like the 2019 Pulwama attack. These events have led the Indian government to prioritize surveillance infrastructure, making CCTV a core component of national and urban security strategies. Integration with Smart City initiatives, projects like Digi Yatra in airports, and widespread deployment in public, enterprise, and retail spaces highlight the country’s proactive stance.

Cities like Hyderabad, Indore, Bengaluru, Delhi, Chennai, and Pune have emerged as leaders in surveillance density. For instance, Hyderabad alone has around 900,000 CCTV cameras, translating to approximately 79 cameras per 1,000 people, showcasing the growing penetration of video monitoring systems across Tier I and Tier II cities.

Market Size and Forecast

India’s video surveillance market is experiencing robust growth, with a market value estimated at ₹106.2 billion in Fiscal 2025, projected to reach ₹227.4 billion by Fiscal 2030, at a CAGR of 16.46%. This expansion is fueled by heightened security concerns, urbanization, smart infrastructure development, and the emergence of video analytics use-cases beyond security, such as people counting, occupancy monitoring, and parking management.

The market is also witnessing a significant volume growth, with unit sales expected to rise from 39.7 million in FY25 to 74.6 million by FY30. Alongside new installations, system replacements represent a sizable opportunity, considering that many of the early deployments from the 2000s are now due for upgrades. The average lifespan of CCTV systems ranges between 5 to 10 years, depending on build and usage.

Component-Wise Breakdown

The camera segment dominates the market, with sales projected to climb from 23 million units in 2020 to 61 million in 2030, and revenues increasing from ₹43.2 billion to ₹137.6 billion over the same period. The shift towards IP/network cameras is pronounced due to their superior video quality, flexibility, and remote accessibility.

In FY25, IP cameras alone accounted for 18.9 million units, generating ₹47.1 billion in revenue. This segment is growing at a CAGR of 16.5% in volume and 20.49% in revenue, driven by rising demand for high-definition surveillance, AI-powered analytics, and the advantages of Power over Ethernet (PoE) and wireless capabilities. States like Telangana, through initiatives such as the Safe City project, exemplify how large-scale IP deployments are becoming a norm.

In contrast, analog cameras—while still relevant for legacy systems and budget-friendly applications—are seeing muted growth with only 9.18% CAGR in volume forecasted till FY30. Their limitations in resolution, scalability, and integration are contributing to their gradual phase-out.

The recorder market also reflects strong momentum. Network Video Recorders (NVRs) are on an upward trajectory with an estimated revenue of ₹24.8 billion by FY30, growing at a CAGR of 16.35%. The shift from Digital Video Recorders (DVRs) to NVRs is driven by the demand for cloud storage, AI-integrated systems, and compatibility with IP cameras. DVRs, though still in use, are facing challenges due to their reliance on coaxial wiring and limited scalability.

Industry-Wise Trends

The commercial segment remains the largest contributor, expected to reach ₹39.4 billion in revenue by FY25, backed by RBI’s CCTV guidelines for banks, surveillance mandates in hospitals, and safety measures in hospitality and construction sectors. The government's Smart Cities Mission has further driven surveillance deployment across public spaces and commercial complexes.

In retail, surveillance systems have evolved from theft prevention tools to smart analytics platforms, supporting customer tracking, energy management, and ANPR (Automatic Number Plate Recognition). Retail CCTV sales are expected to grow from ₹13.4 billion in FY20 to ₹38 billion in FY30, driven by demand for remote monitoring and advanced analytics.

Technology Shifts and Market Evolution

India’s surveillance market has shifted from analog to IP-based systems, improving video quality, enabling remote access, and introducing features like motion detection and intelligent analytics. The industry is also embracing cloud-based video surveillance models (VSaaS) for cost-effective and scalable deployments.

Modern surveillance systems now integrate IoT and AI capabilities, allowing for real-time monitoring, alert systems, and automated analysis. These innovations are redefining surveillance in India, making it more proactive, data-driven, and responsive to emerging threats.

BUSINESS STRENGTHS

Leading Indian Player in Security and Surveillance
Aditya Infotech is the largest provider of video security and surveillance products, solutions, and services in India, commanding a market share of 20.8% in FY25 (Source: F&S Report). The company serves commercial and consumer segments with strong brand recall and end-to-end security offerings.

Extensive Pan-India Network
With presence in over 550 cities and towns, the company operates through 41 branch offices, 13 RMA centers, over 1,000 distributors, and more than 2,100 system integrators. Its workforce of 1,274 employees includes 404 dedicated to sales and marketing, forming the largest security solutions team in India (Source: F&S Report).

Diverse and Comprehensive Product Portfolio
Brands like ‘CP PLUS’ and ‘Dahua’ offer a wide array of products, including smart home IoT cameras, NVRs, DVRs, body-worn cameras, AI-based analytics, biometric systems, access control, interactive displays, and related accessories. In FY25, the portfolio included 2,986 SKUs across various price points.

Robust Manufacturing and R&D Capabilities
The Kadapa facility in Andhra Pradesh, relocated in FY24, is the third-largest CCTV manufacturing facility globally by units produced, with an annual capacity of 17.2 million units (Source: F&S Report). The company was the first in the Indian surveillance sector to localize production under the ‘Make in India’ initiative.

Strong Technological Collaborations and Sourcing Competencies
Strategic partnerships with technology players enhance product innovation and customization. The prior joint venture with Dixon Technologies facilitated manufacturing expansion. In FY25, Aditya Infotech acquired Dixon’s stake and also received equity investment from Dixon.

Experienced Leadership and Skilled Workforce
Led by Chairman Hari Shanker Khemka and Managing Director Aditya Khemka—who has 29 years of industry experience—the company benefits from a leadership team with deep domain expertise. A professional Board and seasoned management team drive governance and growth execution.

BUSINESS STRATEGIES

Leverage India’s Cybersecurity Regulations to Strengthen Market Position
India’s new regulatory framework mandates STQC certification for all internet-connected CCTV devices sold domestically, effective April 9, 2025. This includes stringent compliance such as firmware testing, source code audits, and factory inspections. The company is well-positioned to capitalize on this shift due to its manufacturing scale and domestic presence, aligning with government objectives on data security and localization.

Accelerate Product Innovation and Ecosystem Development
Plans include expanding the product portfolio with next-generation surveillance and smart solutions, including dashboard cameras, interactive whiteboards, and energy management services. R&D will be driven through both in-house teams and collaborations with specialized external partners for technologies like thermal imaging and IP-based systems.

Expand Retail Network via Experience Centres and Stores
Retail reach is set to grow through additional CP PLUS World experience centres and CP PLUS Galaxy stores, especially in Tier II and Tier III cities. These centres aim to deepen customer engagement, strengthen brand visibility, and support the distribution network.

Strengthen Service-Led Model for Enterprise Clients
The strategy involves scaling tailored surveillance and security solutions for enterprise clients across sectors, including attendance, incident management, and education streaming systems. Increased focus on key account management, pre-sales, and direct enterprise engagement will enhance value delivery and position the company as a comprehensive solutions provider.

Scale Manufacturing at Kadapa Facility
The Kadapa manufacturing unit, with an annual capacity of 17.2 million units, is set for capacity utilization and future expansion. This aligns with rising domestic demand and the government’s ‘Make in India’ initiative, enhancing supply chain resilience and product availability.

BUSINESS RISK FACTORS & CONCERNS

1. Product Revenue Concentration
Revenue is primarily dependent on the sale of CCTV cameras, NVRs, DVRs, and PTZ cameras, which contributed 77.47% of operational revenue in Fiscal 2025. Any change in demand, technological shifts, or pricing pressure may significantly impact financial performance.

2. Import Dependency and Geopolitical Risks
Parts and materials are mainly imported from China. Disruptions due to geopolitical tensions, import restrictions, or global commodity price fluctuations may affect supply chain continuity and profitability.

3. Single Manufacturing Location Risk
The sole manufacturing unit in Kadapa, Andhra Pradesh, is vulnerable to regional disruptions such as political instability, natural disasters, or civil unrest, potentially affecting operations and revenue generation.

4. Dependency on Dahua for Product Supply
Dahua-supplied products contributed 24.65% of revenue in Fiscal 2025. Supply disruption, termination of distribution agreements, or non-availability of products on viable terms may adversely affect business operations.

5. Reliance on Dixon Technologies
Manufacturing operations depend on synergies with AIL Dixon Technologies and Dixon Technologies (India) Ltd. Any breakdown in the relationship or inability to scale efficiently post-acquisition may impact operations and growth.

6. Geographic Restrictions due to Trademark Agreement
As per a 2014 family settlement with CP Plus FZE, sales under specific trademarks are restricted in regions like the Middle East, Africa, and CIS countries, limiting expansion opportunities in international markets.

Summary : 
Aditya Infotech Ltd faces revenue concentration risks, supplier dependencies, geographic limitations, and potential disruptions in manufacturing partnerships. Its reliance on specific products, vendors like Dahua, and regions such as Andhra Pradesh and China poses operational and financial vulnerabilities.