Syrma SGS Technology, a leading electronic manufacturing services (EMS) and PCB maker, has announced plans to set up India’s largest printed circuit board (PCB) manufacturing facility in Andhra Pradesh with a total investment outlay of Rs 1,800 crore. The proposed unit is expected to significantly strengthen India’s electronics supply chain and reduce import dependence in this critical segment.
Project Overview
The upcoming integrated PCB manufacturing unit will be set up near Tirupati, Andhra Pradesh, over a 100-acre campus. The project will be executed in multiple phases over 5-6 years with the first phase expected to be operational by mid-2026.
Key Highlights Of The Project
| Parameter | Details |
|---|---|
| Project Size | Rs 1,800 crore investment |
| Location | Near Tirupati, Andhra Pradesh |
| Area | ~100 acres |
| Production Capacity (final phase) | Over 50 million sq. metres of PCBs annually |
| Employment Generation | Over 2,000 direct jobs and 5,000 indirect jobs |
| Target Market | Automotive electronics, telecom, consumer electronics, industrial applications, IoT, defence |
Why Is This Significant?
Currently, India imports nearly 90% of its PCB requirements, with China, Taiwan, and South Korea dominating global supplies. The large-scale manufacturing capability by Syrma SGS is expected to:
- Reduce import dependency: Local manufacturing will substitute PCB imports worth an estimated $2 billion annually.
- Support Atmanirbhar Bharat: Aligns with the government’s vision for electronics manufacturing self-reliance.
- Enhance export competitiveness: Enables India to offer complete EMS solutions to global OEMs.
- Strengthen EV ecosystem: Automotive PCBs are crucial for EV powertrains, battery management, and smart dashboards.
Company Statement
Sandeep Tandon, Managing Director of Syrma SGS, stated:
“With this investment, we aim to create India’s largest and most advanced PCB manufacturing hub. Our integrated facility will cater to the growing domestic market and support global customers looking to diversify supply chains.”
Syrma SGS Financial Snapshot
| Metric | FY23 | FY24E | FY25 Target |
|---|---|---|---|
| Revenue (₹ crore) | 2,260 | 2,900 | 3,800 |
| EBITDA Margin (%) | 9.5 | 10.8 | 12.0 |
| Net Profit (₹ crore) | 114 | 150 | 220 |
| Orders In Hand (₹ crore) | 2,700 | 3,200 | – |
The company reported a strong order book driven by increased outsourcing by global OEMs and growing domestic demand for industrial electronics and automotive components.
Strategic Rationale For Andhra Pradesh Location
| Factor | Advantage |
|---|---|
| Proximity to Electronics Clusters | Near Chennai-Bengaluru industrial corridor, OEM hubs in Tamil Nadu, Karnataka, Telangana. |
| Logistics Efficiency | Access to Krishnapatnam and Chennai ports for export-import operations. |
| Government Incentives | Andhra Pradesh’s proactive electronics manufacturing policies offer subsidies and single-window clearances. |
| Skilled Workforce Availability | Presence of electronics engineering colleges and ITIs in Tirupati and surrounding districts. |
PCB Market Opportunity In India
| Year | PCB Market Size ($ bn) | Import Dependency (%) |
|---|---|---|
| 2022 | 4.2 | 92 |
| 2023 | 4.8 | 90 |
| 2025 (Projected) | 6.1 | 85 |
India’s demand is being driven by growth in smartphones, EVs, consumer appliances, telecom, and industrial automation. PCB is the backbone of all electronic hardware, making local production critical for the entire value chain.
Industry Reactions
| Leader | Organisation | Comment |
|---|---|---|
| Rajeev Chandrasekhar | Minister of State for Electronics & IT | “Investments like Syrma SGS’ PCB unit are crucial for India’s ambitions to become a global electronics manufacturing hub.” |
| Nitin Kunkolienker | MAIT | “PCBs form 20-25% of total BoM cost in electronics. Local manufacturing will directly impact competitiveness and supply chain security.” |
| Arun Mampazhy | Electronics Industry Analyst | “If India builds large-scale PCB manufacturing, global EMS companies will prefer setting up end-to-end assembly operations here.” |
Recent Syrma SGS Strategic Moves
| Month | Development | Impact |
|---|---|---|
| June 2025 | Acquired PCB prototyping startup Fabtronics | Enhanced quick-turn capabilities |
| April 2025 | Expanded Chennai EMS facility by 30% | Increased capacity for automotive and industrial clients |
| March 2025 | Signed strategic partnership with Japanese automotive Tier-1 supplier | Multi-year PCB and electronics assembly contract |
Challenges Ahead
Despite the positive developments, the PCB manufacturing sector faces structural challenges:
- High Capex & Technology Requirements: Advanced PCBs need sophisticated multilayer manufacturing capabilities and continuous upgrades.
- Raw Material Imports: Copper clad laminates, prepregs, and specialty chemicals still need to be imported.
- Environmental Compliance: PCB manufacturing generates effluents that require strict adherence to environmental norms.
- Global Competition: China’s scale and government support make it highly competitive on costs and technology.
Government’s Policy Push
- PLI Scheme For PCBs: Industry bodies have requested the government to launch a Production Linked Incentive scheme exclusively for PCBs to complement the semiconductor PLI.
- Electronics Manufacturing Clusters (EMC 2.0): Andhra Pradesh, Tamil Nadu, and Uttar Pradesh are actively bidding for large electronics manufacturing proposals.
- Duty Rationalisation: Reduction in import duties on PCB raw materials is under consideration to incentivise local manufacturing.
Social Media Buzz
- “Finally, India getting its own PCB giant. Electronics Atmanirbharta cannot happen without this.”
- “Rs 1,800 crore investment in PCB will boost EVs, smartphones, and IoT ecosystems.”
- “Hope government supports with PLI and environmental clearances to make this a global success.”
Future Outlook
If executed as planned, Syrma SGS’ new PCB unit will:
- Position India as a viable alternative to China, Taiwan, and Vietnam for global PCB sourcing.
- Enhance supply chain resilience for Indian OEMs amid geopolitical uncertainties.
- Generate high-skill jobs in electronics design, fabrication, and manufacturing engineering.
- Contribute towards India’s $300 billion electronics production target by 2026.
Conclusion
Syrma SGS’ announcement to set up India’s largest PCB manufacturing facility in Andhra Pradesh with a Rs 1,800 crore investment marks a milestone in the country’s electronics manufacturing journey. The project will not only bridge a critical gap in India’s supply chain but also reinforce the nation’s ambitions of becoming a global hub for electronics design and manufacturing in the coming decade.
Disclaimer
This news article is prepared for general business news dissemination based on company announcements, market data, and industry expert inputs. Readers are advised to consult professional investment advisors and government notifications for operational, regulatory, or financial decisions related to electronics manufacturing projects.
