Syrma SGS Technology Limited , a leading Indian Electronic Systems Design and Manufacturing company, has announced a significant expansion of its manufacturing capabilities. The company has begun construction on a new state-of-the-art Printed Circuit Board (PCB) manufacturing facility in Andhra Pradesh, marking a crucial step in its long-term growth strategy.

Key Highlights of the Expansion

• Location: Naidupeta Industrial Zone, Andhra Pradesh
• Subsidiary: The plant is being developed through Syrma Strategic Electronics Pvt. Ltd., a subsidiary of Syrma SGS
• Production Capacity: The facility will manufacture both single-layer and multi-layer PCBs
• Employment Generation: Expected to create over 1,000 direct jobs
• Strategic Partnership: Joint venture with South Korea's Shinhyup Electronics

Strategic Implications

This expansion represents a significant move for Syrma SGS in strengthening its position within India's rapidly growing electronics manufacturing sector. By partnering with Shinhyup Electronics, a South Korean firm known for its expertise in PCB engineering, Syrma SGS aims to enhance its technological capabilities and global competitiveness.

Economic Impact

The new facility is poised to have a substantial economic impact on the Naidupeta region:

Industry Perspective

This move by Syrma SGS aligns with the broader trend of expanding India's electronics manufacturing capabilities. As global supply chains evolve, India is positioning itself as a key player in the electronics industry. The partnership with a South Korean firm also highlights the increasing international collaboration in this sector.

The expansion of PCB manufacturing capabilities is particularly significant given the critical role of PCBs in virtually all electronic devices. By enhancing its capacity to produce both single-layer and multi-layer PCBs, Syrma SGS is positioning itself to meet the diverse needs of the electronics industry, from consumer electronics to industrial applications.

As the project progresses, it will be interesting to observe its impact on Syrma SGS's market position and financial performance, as well as its contribution to India's broader electronics manufacturing ecosystem.

Syrma SGS Technology , a leading electronic manufacturing services (EMS) company, has reported a robust performance for the second quarter, with significant revenue growth and strategic expansions into new sectors.

Strong Financial Performance

The company achieved a record quarterly revenue of INR 1,146.00 crores, marking a 37% year-on-year growth. The operating EBITDA stood at INR 116.00 crores, representing a 56% increase compared to the same quarter last year, with an EBITDA margin of 10.1%.

Key Financial Highlights for Q2:

Strategic Acquisitions and Partnerships

Syrma SGS Technology has made significant strides in expanding its business portfolio:

1. Defense Sector Entry: Acquired a 60% stake in Elcome, a company with a 50-year legacy in providing navigation, surveillance, and communication solutions to armed forces and paramilitary.

2. Joint Venture with Elemaster: Established a partnership to cater to the Indian market initially, with potential for integration into Elemaster's global supply chain.

3. PCB Manufacturing: Received ECMS approval for a PCB manufacturing project, with construction set to begin in December and trial production expected by December 2026.

4. Solar Inverter Manufacturing: Partnered with KSolare and Premier to manufacture solar inverters at the Pune facility.

Business Outlook

• The company has onboarded 8 major customers with potential revenues of $100 million.
• Entered a long-term framework contract worth $250 million over 2-3 years.
• Expects sustained growth across automotive, industrial, and defense segments.
• Aims to increase export contribution, which currently stands at about 25% of total revenue.

Management Commentary

J.S. Gujral, Managing Director of Syrma SGS Technology, stated, "Q2 has been a quarter full of activities and a lot of positivity. While we achieved record EBITDA, profit margins, turnovers, what was more significant in this quarter is the slew of tie-ups and joint ventures, which we have executed. And I think these joint ventures and tie-ups lay the foundation for the sustained future growth in the years to come."

Syrma SGS Technology remains optimistic about its growth trajectory, focusing on high-margin business verticals, expanding its portfolio, and improving operational efficiencies. The company's strategic moves into defense, PCB manufacturing, and renewable energy sectors are expected to drive future growth and profitability.

As the electronic manufacturing industry in India enters its next phase of growth, Syrma SGS Technology is well-positioned to capitalize on the increasing demand and government support for the sector.