Kaynes Technology Subsidiary Inks ₹4,995 Crore MoU with Tamil Nadu Government for Manufacturing Expansion

1 min read     Updated on 04 Aug 2025, 08:47 PM
scanxBy ScanX News Team
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Overview

Kaynes Circuits India Private Limited, a subsidiary of Kaynes Technology India Limited (KTIL), has signed a non-binding MoU with the Tamil Nadu government for a proposed investment of ₹4,995 crores over six years. The investment aims to establish new manufacturing facilities for advanced electronic components, including multilayer PCBs, HDI PCBs, and flexible PCBs. The government will provide support through incentives, subsidies, and infrastructure assistance. This expansion could boost Tamil Nadu's position in India's electronics manufacturing sector.

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*this image is generated using AI for illustrative purposes only.

Kaynes Technology India Limited (KTIL) has taken a significant step towards expanding its manufacturing capabilities in Tamil Nadu. The company's wholly-owned subsidiary, Kaynes Circuits India Private Limited, has signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu, outlining a proposed investment of approximately ₹4,995.00 crores over the next six years.

Investment Details and Scope

The MoU focuses on establishing new manufacturing facilities, including greenfield projects and capacity expansions within Tamil Nadu. This strategic move aims to bolster Kaynes Circuits' production capabilities in the state, potentially creating new job opportunities and contributing to the region's economic growth.

Government Support and Incentives

As part of the agreement, Kaynes Circuits will explore various financial incentives and industrial policies offered by the Tamil Nadu government. These may include:

  • Subsidies and other financial benefits
  • Structured assistance packages
  • Infrastructure support
  • Assistance with regulatory clearances

The Tamil Nadu government, through its nodal agency Guidance, has committed to providing necessary facilitation and support in line with applicable laws and policies.

Kaynes Circuits' Technological Prowess

Kaynes Circuits India Private Limited specializes in producing advanced electronic components, catering to critical applications across various high-tech sectors. Their capabilities include:

  • Multilayer PCBs up to 74 layers
  • HDI PCBs up to 8 layers
  • Flexible PCBs

These components are crucial for industries such as:

  • Aerospace
  • Defense
  • Artificial Intelligence
  • Medical Devices
  • Telecom Infrastructure
  • Smartphones and Wearables

Additionally, the company is involved in Copper Clad Laminate (CCL) manufacturing, producing high-performance laminates suitable for high-frequency applications, radars, and low signal loss systems.

Implications and Future Outlook

While the MoU represents a statement of mutual intent rather than a legally binding obligation, it signifies a strong commitment from both Kaynes Technology and the Tamil Nadu government to foster growth in the state's electronics manufacturing sector. This investment, if realized, could position Tamil Nadu as a key player in India's electronics manufacturing landscape, particularly in advanced and specialized components.

As the electronics industry continues to evolve rapidly, Kaynes Technology's expansion plans align with the growing demand for sophisticated electronic components in various tech-driven sectors. The successful implementation of this MoU could not only boost the company's production capabilities but also contribute significantly to India's push towards becoming a global electronics manufacturing hub.

Investors and industry watchers will be keenly observing the developments following this MoU, as it could potentially impact Kaynes Technology's market position and financial performance in the coming years.

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Kaynes Tech Expands Global Footprint with Canadian Acquisition, Reports Strong Q1 Results

2 min read     Updated on 30 Jul 2025, 10:45 PM
scanxBy ScanX News Team
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Overview

Kaynes Technology India Limited, an IoT solutions-enabled electronics manufacturer, reported impressive Q1 financial results with 34% YoY revenue growth to ₹6,734.66 million and 47% YoY net profit increase to ₹746.12 million. The company also acquired August Electronics in Canada, enhancing its manufacturing capabilities and strengthening its presence in North America. The order book stood at ₹74,011.00 million, indicating strong future revenue visibility. Kaynes Tech remains focused on complex, high-margin verticals and is committed to becoming a high-value, design-led global ESDM partner.

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*this image is generated using AI for illustrative purposes only.

Kaynes Technology India Limited , a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer, has made significant strides in its global expansion strategy while delivering impressive financial results for the first quarter.

Strategic Acquisition in Canada

Kaynes Tech has successfully acquired August Electronics in Canada, marking a crucial step in enhancing its manufacturing capabilities and strengthening customer relationships in key market segments. This strategic move is expected to bolster the company's presence in North America and offer a compelling India-Canada supply chain alternative for global clients, particularly those looking to diversify from China.

The acquisition aligns with Kaynes Tech's long-term growth objectives, which include expanding its capabilities in high-potential areas such as Original Design Manufacturing (ODM) and strategic electronics sectors like spacetech and aerospace.

Strong Financial Performance in Q1

Alongside its expansion efforts, Kaynes Tech has reported robust financial results for the quarter ended June 30:

  • Revenue: The company achieved consolidated revenues of ₹6,734.66 million, representing a significant year-on-year growth of 34%.
  • EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹1,130.00 million, showcasing a remarkable 69% year-on-year increase.
  • EBITDA Margin: The EBITDA margin improved substantially to 16.80%, up 350 basis points from 13.30% in the same quarter last year.
  • Net Profit: Kaynes Tech reported a net profit of ₹746.12 million, demonstrating a solid 47% year-on-year growth.
  • PAT Margin: The profit after tax (PAT) margin increased to 11.10%, up from 10.10% in Q1 of the previous year.

Order Book and Financial Position

The company's order book stood at ₹74,011.00 million as of June 30, compared to ₹50,386.00 million on June 30 of the previous year, indicating strong revenue visibility for the future. Kaynes Tech's net worth has also seen significant growth, reaching ₹45,028.00 million as of June 30, up from ₹25,352.00 million a year ago.

Management Commentary

Ramesh Kunhikannan, Managing Director & Promoter of Kaynes Technology India Limited, commented on the results: "Our consistent focus on complex, high-margin verticals – such as industrial & EV, aerospace, smart infrastructure, etc. - has helped sustain profitable growth. The recent acquisition of August Electronics in Canada not only adds manufacturing capacity and capabilities in North America but also brings strong customer relationships in key high-value segments."

Future Outlook

Kaynes Tech remains committed to its strategic vision of becoming a high-value, design-led global ESDM partner. The company continues to invest in emerging and high-potential verticals, the ODM segment, and strategic electronics, including SpaceTech, aerospace, and avionics, to create a diversified, resilient, and truly global enterprise.

With its strong financial performance, strategic acquisitions, and focus on high-growth sectors, Kaynes Technology India Limited appears well-positioned to capitalize on the growing opportunities in the global electronics manufacturing industry.

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