As businesses increasingly adopt automation and artificial intelligence, industrial automation firm ISDN Holdings is setting its sights on further expansion. Headquartered in Singapore, the company focuses on four key pillars — motion control, precision manufacturing, systems solutions and software — to support organisations in automating workflows and processes.
The company is seeking new opportunities in China, where it established a presence in 1995. With the country prioritising automation and advanced manufacturing to tackle labour shortages and demographic challenges, ISDN Holdings sees significant potential for growth. “We have to position ourselves so that when the time is right, we are ready,” says ISDN’s president and managing director, Teo Cher Koon.
The firm has established facilities in Taiwan and Malaysia, two key semiconductor hubs in the region. This strategic move allows it to better serve the growing number of companies adopting the ‘China plus one’ strategy — diversifying manufacturing operations and supply chains beyond China to mitigate risks while retaining a foothold in the vast market.
At the same time, ISDN is expanding its capabilities across the entire automation technology stack. In 2022, for instance, it launched a software business in Nanjing, China, which now offers a comprehensive suite of software, including solutions for warehouse management, equipment, manufacturing energy, quality control and enterprise resource planning.
With these capabilities, it can go to existing and prospective customers and better pitch them on digitalisation. “We can help our customers to integrate various types of robots to handle their incoming and outgoing goods too if needed, so it’s a total solution for them,” says Teo. In fact, ISDN targets brisk business in smart warehouses and data centres, which will be in increasing demand in years to come.
Teo notes that ISDN has been accumulating software and hardware expertise since its founding in 1986, giving it a competitive edge over many rivals. “With all the products we have developed and business relationships we have nurtured with the world-renowned business partner, we have a very strong base to expand from and cater to more customers as we move forward.”
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Riding the wave in clean energy
Over the past decade, ISDN has steadily developed another growth vertical — renewable energy. The firm began constructing its first mini hydropower plant in North Sumatra, Indonesia, in 2016 and now operates three plants in the province, with a combined capacity of 24.6 megawatts — enough to power over 30,000 homes in the region.
“Hydropower is a matured technology and there is a 100-year-old hydropower plant in Jakarta built by the French that is still running today,” Teo adds. “That really brought home how this is something long-lasting that could be good for us.”
After overcoming issues such as the operation permit and the Covid-19 pandemic delaying the commissioning of two plants — completed in 2022 to 2023 — ISDN is now forging full steam ahead, with two more plants slated to become operational next year and seven others in the pipeline.
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Apart from bringing in stable, sustainable recurring income to supplement its core business’s more cyclical revenue, its diversification is also in line with growing calls for companies to be more environmentally friendly. “Our clean industries portfolio allows us to demonstrate our corporate commitment to sustainability while creating investment value,” says Teo.
Although the capital investment for hydropower plants is substantial, and ISDN is borrowing funds based on its balance sheet to finance its entry into the sector, Teo is confident it can attract investment from partners or secure project financing from banks. He adds: “We do have a track record and hydropower plants that we can point to, so we are in a good position to convince them.”
“I hope that investors recognise we are an evolving company. From a small firm involved in distribution to the whole stack of solutions that we now provide, we have progressed very far and will continue to do so. We are trying to make our way in new areas and incubate new businesses, always with the goal of making an impactful difference in the industry.”
Guiding employees with a clear eye
Driving this ambition are ISDN’s employees. By supporting its staff through both good and challenging times, the firm has earned long-term loyalty, with many managers having been with the company for over 20 years, and some even surpassing 30 years. “This is key as our business is really about service, and we need people who can deliver that service,” says Teo.
“We need people who can understand customers’ needs to solve their problems. That means the people must be not only talented but also passionate about their work and empathetic towards the customers and their issues. This is among the ways we can stand out compared to our competitors.”
The ISDN Academy, spun off from the company, helps it to attract and train talent in robotics, automation and Industry 4.0 technologies, some of whom could go on to join its ranks. The training process also gives it the chance to observe the students, identify their strengths and weaknesses, and take note of exceptional ones.
He adds: “I try my best to use my employees’ strengths, avoid their weaknesses, and help them to succeed. Such sincerity from management is as critical as the staff’s dedication. When you speak what you believe and walk the talk, you gain respect from your workers, the market, and the people you deal with in business.”
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Unusually, for the head of a company, this also includes Teo advising those who work for him to accept their limitations. “You must be true to yourself and your capabilities so you don’t have false expectations of what you can do. If you keep trying to do more and move up and cannot cope, you will just end up miserable and quit, and that’s bad for our business, too.”
These leadership values of integrity and sincerity have drawn people to the firm. Teo says: “We have job applicants come to us as they like the way I do things, the image we have. This shows we’re on the right path, especially as we go on to launch new products and set up new companies. We can’t stay put if we want to see the future. We must keep moving forward.”
About ISDN Holdings
ISDN is a leading provider of industrial automation solutions throughout Asia. The company has more than 10,000 customers and 74 offices spanning key Asian growth markets. It also has a 30-year history of innovating alongside the growing technology needs of its customers. Today, ISDN’s solutions power advanced industrial sectors including semiconductors, Industry 4.0 manufacturing, medical devices, aerospace, and clean energy. ISDN’s solutions power products and manufacturing in 5G, industrial robotics, the Internet of Things (IoT/IIoT), cloud and edge computing and Industry 4.0 intelligent manufacturing. ISDN was founded in 1986 and has been listed on the Singapore Exchange (SGX) Main Board since 2005 and the Stock Exchange of Hong Kong Main Board since 2017. For more information, please visit www.isdnholdings.com
About kopi-C: the Company brew
kopi-C is a regular column by SGX Research in collaboration with Beansprout (https://growbeansprout.com), a MAS-licensed investment advisory platform that features C-level executives of leading companies listed on SGX. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations
