Syrma SGS to Advance PCB Manufacturing Operations as Global OEMs Seek to Shift Supply-Chain Away from China

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Electronics manufacturer Syrma SGS is preparing a significant expansion into printed circuit board (PCB) manufacturing and is in discussions with German, Japanese, and Taiwanese companies seeking to diversify incremental demand away from China. The company’s upcoming PCB facilities have drawn strong interest from global firms in automation, automotive, and energy hardware, marking one of India’s strongest early opportunities for import substitution in high-value electronic components.

Managing director Jasbir Singh Gujral told Moneycontrol that global OEMs are actively seeking Indian partners as supply chain rebalancing accelerates. The shift aligns with the Centre’s ECMS 2.0 incentives, which are expected to catalyse large-scale domestic component manufacturing.

Gujral said cumulative investments of Rs 7,000 to 10,000 crore across new PCB facilities under ECMS 2.0 could help substitute 25 to 30% of India’s Rs 40,000-crore annual PCB import bill in the first phase.

“Whenever we present to potential OEMs and EMS customers and mention that we are diversifying into PCBs, interest spikes. I’ve had detailed conversations with one of India’s largest groups about the indigenisation of inputs and the roadmap for localising raw materials. Global companies from Japan and Germany have expressed interest,” Gujral said. Despite operating its own EMS business, Syrma SGS will initially prioritise external customers, particularly global and large Indian firms. 

“Interest from industry is very strong. Companies are asking about product range and readiness dates. Globally, companies want to diversify their supply chains; until now, alternatives were limited. With strong central and state support, India can present credible alternatives,” he added. The company’s PCB portfolio will serve industrial, automotive, consumer, renewable energy, space, med-tech, power electronics, and select telecom applications.

“We won’t target mobile phones initially. Also, energy meters are a major opportunity - the government has to deploy around 50 million energy meters. Solar inverters and other mass applications also present large PCB demand,” Gujral added.

The company eventually plans to use these PCBs for its own EMS operations. “We can produce multi-layer PCBs for our own needs. However, our internal volumes may be relatively small, so we will prioritise external customers. But having the ability to source in-house adds flexibility and credibility; for very large volume orders, we will supply ourselves,” he said.

Five ECMS 2.0 Applications Filed

Under ECMS 2.0, Syrma SGS has filed five applications - three for multi-layer PCBs, HDI PCBs, and CCL (Copper Clad Laminate), and two others for camera modules and magnetic/mechanical components. Approvals have already been received for a multi-layer PCB plant in Andhra Pradesh and a camera module facility in Pune.

“The multi-layer PCB is our first priority. In the first week of December, we will finalise construction start dates. This is a large factory of about 700,000 sq. ft. at Naidupeta. If construction starts now, we expect to complete construction and install machines by December next year, start trial production, and begin commercial production by April 2027,” Gujral said.

The first-phase investment in multi-layer PCBs is $90 million, of which $40 million will be spent by December 2026.

“The funding will be a mix of debt and equity; around 25% will be invested by a collaborator. Andhra Pradesh government offers up to 50% capital subsidy for eligible investments; if we spend $40 million by the stipulated timeline, we will receive about $20 million back via an escrow mechanism,” he said.

Japanese Tech Partnership for Camera Module Unit

Syrma SGS is close to securing a partnership with a Japanese company for its camera module unit and plans to invest Rs 250 crore over five years, targeting revenues of Rs 600 to 700 crore.

“It’s relatively small compared to PCB, but it is a high-technology segment. We are negotiating technology partnerships. A camera module ecosystem is largely in China, but original technology often comes from Japan, and Japan also has capabilities. For PCBs and camera modules, we prefer stable, non-Chinese partnerships where possible,” Gujral said.

Applications will span mobile devices, laptops, surveillance systems, drones, and automotive. “We are assessing which segments to prioritise. It will most likely be other than mobile — mobile is highly volume-driven and tightly integrated into OEM/ODM ecosystems,” he said. Syrma SGS expects 30% revenue growth this year and a double-digit EBITDA increase by FY28.

“Our focus is more on EBITDA quality. Industrial, automotive and exports have done well—exports grew about 30% in the first six months and automotive around 25%. Industrial, automotive and consumer together account for 75 to 80% of our business; the remaining 20% includes med-tech, railways and miscellaneous verticals,” he said.

Gujral reiterated that Rs 7,000 to 10,000 crore of cumulative investments under ECMS 2.0 could help substitute 25 to 30% of India’s PCB import bill. “Against an import-dependent market of nearly Rs 40,000 crore, these capacities are expected to substitute only about a quarter of the current inflows initially. Syrma SGS alone is investing about Rs 1,500 crore, with other players committing comparable amounts. As domestic firms scale, stabilise yields and win customer validation, additional capacity could gradually deepen India’s self-reliance,” he added.