CP PLUS, the flagship brand of Aditya Infotech, is India’s largest domestic player in the video surveillance and security systems space. With its upcoming IPO of INR 1,300 crore (INR 500 crore fresh issue + INR 800 crore OFS), the company is looking to consolidate its leadership and ride the rising demand in smart cities, infrastructure and institutional security segments.
With deep manufacturing capabilities, a strong distribution network and healthy margins post FY25, Aditya Infotech is a great business model – especially as India is emerging as an electronics manufacturing hub under the ‘Make in India’ and PLI push. Lets explore Aditya Infotech business model.
1. Company Background & Evolution
Founded in 1994, Aditya Infotech started as a technology distribution company. In 2014, the company rebranded under “CP PLUS” to create a direct identity in the video surveillance industry. Over the last decade, it has grown into a national leader in digital security systems with a strong ecosystem of partners, branches and technological edge.
Today, CP PLUS is a top security brand in Asia and one of the most trusted in India, with a mission to bring affordable high quality surveillance products to every corner of the country. The brand tagline – “Uparwala Sab Dekh Raha Hai” – has helped CP PLUS achieve high consumer recall and go deep into Tier 2 and Tier 3 markets.
2. Core of Aditya Infotech Business Model
Aditya Infotech business model is built around a vertically integrated play across the surveillance and security value chain:
- Product Portfolio: CCTV cameras, DVRs, NVRs, IP cameras, home security solutions, body-worn cameras, AI video analytics, command center software, and video management systems.
- End-User Verticals: Real estate, banking, retail, infrastructure, traffic surveillance, education, defense, and smart cities.
- Revenue Streams:
- Sales of surveillance hardware and accessories
- Customized software solutions (AMS, CRM, Edge AI analytics)
- Post-sales services, AMC, and installation support
- OEM manufacturing (under JV with Dixon)
Aditya Infotech business model combines high-volume product sales with technology-driven services (e.g., HMS and AMS), creating a hybrid model of hardware + SaaS-style surveillance.
3. Manufacturing Capabilities & ‘Make in India’ Push
Aditya Infotech’s strategic shift into local manufacturing has emerged as one of its core strengths. With its Kadapa facility (JV with Dixon Technologies) and previous setup in Tirupati, the company has an installed capacity of over 17.2 million units annually.
Key highlights:
- Facility: 2,04,000+ sq. ft. in Kadapa (leased from Andhra Pradesh Industrial Infrastructure Corp)
- Technology: SMT lines, camera and DVR assembly, AI-enabled testing, environmental endurance labs
- Certifications: EN 61373, STQC (mandatory for government supply)
- Output: ~85% of product portfolio now locally manufactured
- Support: Aligned with PLI schemes, especially the March 2025 INR 22,919 Cr incentive for component manufacturing
This allows CP PLUS to control quality, reduce import reliance, improve turnaround time, and remain compliant with increasing government sourcing mandates.
4. Aditya Infotech Business Model Analysis: Distribution Strength
A cornerstone of Aditya Infotech’s dominance is its deep distribution and service network:
- Branches & Support:
- 41 branch offices and RMA centers
- 13 service centers (CP PLUS IntelliServe)
- 10 warehouses across 4 regions
- 550+ cities and towns covered
- Channel Network:
- 1,011 active distributors (with regional split)
- 2,100+ system integrators
- 69 CP PLUS Galaxy stores (retail presence)
- Training & Engagement:
- Roadshows and dealer meets in Tier 2/3 cities
- Installer training and certification programs
- CP PLUS World Centers: immersive experience zones
Aditya Infotech business model focused on hyper-local distribution, backed by ERP-based credit systems and zonal autonomy, gives Aditya Infotech a decisive edge in scale, reach, and responsiveness.
5. Technology & Differentiators
In a highly commoditized sector, CP PLUS differentiates via in-house software development and advanced integrations:
- Edge AI Box: Real-time facial recognition, intrusion prevention, ANPR, vehicle count, mask detection, and more
- HMS (Health Monitoring System): Real-time system performance diagnostics
- AMS (Attendance Management System): Cloud-based workforce tracking with app support
- CRM Suite: For post-sales management, inventory tracking, and SLA monitoring
- Integrated Command Centers: Railways, real estate, ATMs, and traffic use cases
The company has embraced AI, IoT, cloud, and cybersecurity—positioning itself not just as a hardware player but as a full-stack surveillance solutions provider.
6. Aditya Infotech Business Model: Product Portfolio Diversification
Aditya Infotech has made a conscious effort to avoid product concentration and build a multi-tiered portfolio across varied price points and applications.
⚙️ Product Categories
- CCTV Systems: IP cameras, HD analog, PTZ, dome, bullet
- Recording Solutions: DVRs, NVRs, edge recorders
- AI Solutions: Motion detection, perimeter defense, facial analytics
- Access Control: Time & attendance, biometric scanners
- Home Security: Door phones, alarms, smart kits
- Smart City Applications: Traffic enforcement, crowd monitoring, ANPR
- Software Solutions: HMS, AMS, CRM, VMS platforms
🎯 Use-Case Tailoring
- Real Estate: Smart elevators, lobby cams, parking AI, door-intercoms
- Banking: Vault surveillance, ATMs, mobile van tracking
- Railways: Smart platforms, AI tampering detection, perimeter fencing
- Retail & Commercial: Heat-mapping, footfall analytics, PoS integration
This breadth positions CP PLUS not just as a vendor—but a one-stop security partner with solutions adaptable to sector-specific demands.
7. Financial Performance Snapshot
Here’s a concise view of Aditya Infotech’s financial trajectory:
| Metrics | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 2,284.55 | 2,782.43 | 3,111.87 |
| Net Profit | 108.31 | 115.17 | 351.37 |
| PAT Margin (%) | 4.74% | 4.14% | 11.29% |
| EBITDA Margin (%) | 7.89% | 8.46% | 8.27% |
| EPS (INR) | 10.57 | 11.24 | 33.02 |
| RONW (%) | 34.76% | 27.15% | 34.53% |
| ROCE (%) | 23.07% | 23.57% | 33.27% |
| D/E Ratio | 1.31 | 0.96 | 0.41 |
📌 Key Trends:
- FY25 net profit tripled despite modest revenue growth
- Sharp drop in debt, strong ROCE, and robust cash flows
- Profitability spike partly due to fair value gain of INR 2,486 Cr (non-cash)
The earnings jump suggests operating leverage benefits and maturity of in-house manufacturing.
8. CP Plus IPO Details & Valuation
- IPO Size: INR 1,300 Cr (Fresh: INR 500 Cr | OFS: INR 800 Cr)
- Price Band: INR 640 – 675 per share
- Face Value: INR 1 | Lot Size: 22 shares | Retail Quota: 10%
🔍 Valuation Metrics (at upper band)
- FY25 EPS: INR 33.02 → P/E ~20.44x
- Adjusted EPS post-issue: INR 29.98 → P/E ~22.52x
- ROE: ~34.5%, ROCE: ~33.3%
- Debt-to-equity drops to 0.41x (further down after IPO repayment)
💡 GMP (Grey Market Premium): INR 225 → ~33% listing premium expected (as of 25 July)
The valuation appears reasonable for a niche electronics play with dominant market share, strong earnings growth, and favorable macro tailwinds.
9. Sectoral Tailwinds & Policy Catalysts
The company is at the intersection of several structural trends:
- 📈 Video Surveillance Boom: India’s CCTV demand expected to double by 2030
- 🏛️ PLI Scheme 2.0: INR 22,919 Cr approved in March 2025 for components (PCBs, modules, camera parts)
- 🔧 STQC Certification: Mandatory for govt tenders from Sept 2023, favoring players with Indian manufacturing
- 🏙️ Urban Infra & Smart Cities: Cameras, sensors, and AI analytics to play critical role in city surveillance
- 🌍 Export Opportunity: Still <1% of revenue—huge room to grow in MEA, SEA, and Africa
Conclusion
Aditya Infotech has a strong case to invest with dominant market share, robust manufacturing, sector specific solutions and strong financials. With policy tailwinds and smart city demand, the IPO valuation looks attractive especially with high margins, low debt and growth potential in India’s growing electronics
Verdict: With a robust operating model, solid financials, and realistic pricing, Aditya Infotech IPO offers a sound bet for investors seeking long-term exposure to India’s electronics and surveillance growth.