Amber Enterprises ' subsidiary IL JIN Electronics India has entered into a definitive agreement to acquire a majority stake in Shogini Technoarts, a prominent player in the Printed Circuit Board (PCB) manufacturing industry. This strategic move could reshape the landscape of India's electronics manufacturing sector.

Deal Highlights

Strategic Implications

This acquisition marks a significant step for Amber Enterprises in strengthening its position in the electronics manufacturing ecosystem. Shogini Technoarts, being one of India's top five PCB manufacturers, brings valuable expertise and production capabilities to the Amber Enterprises group.

Market Outlook

Kotak Institutional Equities has maintained an 'add' rating on Amber Enterprises with a price target of ₹8,200.00. The brokerage firm's analysis suggests a promising outlook for the company's electronics segment:

Industry Impact

The acquisition aligns with the growing trend of vertical integration in the electronics manufacturing sector. By bringing PCB manufacturing capabilities in-house, Amber Enterprises is poised to enhance its value proposition in the market.

This move could potentially lead to:

• Improved supply chain control
• Enhanced quality management
• Increased cost efficiencies

As the electronics manufacturing sector in India continues to evolve, strategic acquisitions like this one may play a crucial role in shaping the competitive landscape and driving growth in the industry.

Amber Enterprises , through its material subsidiary Il Jin Electronics, has completed the acquisition of an 80% stake in Pune-based Shogini Technoarts Private Limited. The deal, valued at approximately Rs 5.06 billion, marks a significant step in strengthening Il Jin's position in the printed circuit board (PCB) manufacturing sector.

Acquisition Details

The acquisition, which was previously announced through a Share Purchase Agreement (SPA) and a Shareholders' Agreement (SHA), has now been finalized. Il Jin Electronics has successfully acquired a majority stake in Shogini's equity share capital, expanding Amber Enterprises' portfolio through this strategic investment.

About Shogini Technoarts

Established in 1982, Shogini Technoarts is a prominent manufacturer of various types of PCBs, including single-sided, double-sided, multi-layered, metal clad, and flexible PCBs. The company caters to a wide range of applications across industries such as automotive, defense, medical electronics, industrial electronics, power electronics, process control, telecommunication, computer peripherals, and LED lighting.

Financial Highlights

Shogini Technoarts has demonstrated consistent growth over the past three years:

Strategic Rationale

The acquisition is expected to yield several benefits for Il Jin Electronics:

1. Strengthening in-house PCB production expertise
2. Reducing reliance on external suppliers
3. Broadening product offerings with advanced PCB types
4. Advancing manufacturing, innovation, and design capabilities
5. Tapping into new customer segments and markets

Management Commentary

Mr. Jasbir Singh, Executive Chairman and CEO of Amber Group, had previously stated, "Shogini further strengthens the bare PCB vertical and Amber Group's progression into a leading full-stack, backward-integrated EMS company. Together with Ascent Circuits' existing facility, the upcoming new facility, and our strategic JV with Korea Circuit, we are laying a strong foundation to emerge as a leading PCB manufacturer in the country."

Mr. Abhijit Tamhankar, Chairman & Managing Director of Shogini, had added, "This strategic partnership with Amber Group marks a pivotal moment in our journey, driven by a shared vision to harness synergies and scale the business. Together, we aim to accelerate growth, empower teams, and enhance value to our customers across diverse sectors."

Transaction Outcome

With the completion of this acquisition, Shogini Technoarts has become a subsidiary of Il Jin Electronics and a step-down subsidiary of Amber Enterprises India Limited. The final cost of the acquisition, approximately Rs 5.06 billion, has now been disclosed.

This strategic move is expected to contribute significantly to Il Jin Electronics' growth in the PCB manufacturing sector and support the vision of 'Aatmanirbhar Bharat' by advancing local manufacturing capabilities in the electronics industry.