Jefferies, in its latest note on India’s Electronics Manufacturing Services (EMS) sector, said that Amber Enterprises India and Syrma SGS Technology have applied for printed circuit board (PCB) manufacturing under the government’s Electronics Components Manufacturing Scheme (ECMS).
Dixon Technologies is preparing to backward-integrate into the mobile value chain through camera and display modules, while also venturing into lithium-ion batteries.
According to Jefferies, PCB manufacturing requires an 18-20 month construction cycle, with asset turns of around 1x and operating margins of 15 per cent upon scale-up. Amber’s electronics division, which includes ILJIN and EVER, is expected to contribute over 30 per cent of sales by FY28, compared with 22 per cent in FY25. For Syrma, PCB will be a new business line and could account for less than 5 per cent of sales by FY29.
The brokerage estimates capital expenditure for its EMS coverage universe (Amber, Syrma, Dixon and Kaynes Technology) at Rs 9,000 crore in FY26-28, significantly higher than Rs 5,800 crore in FY23-25. Much of this spending is expected to be front-loaded, keeping near-term RoCEs range-bound until utilisation improves.
Jefferies remains positive on Amber Enterprises (Buy; FY27e PE at 42x), Syrma SGS (Buy; 39x) and Kaynes Technology (Buy; 65x). It has a Hold rating on Dixon Technologies (70x).
Amber Enterprises: The company has filed two ECMS applications worth Rs 4,200 crore. This includes one for multi-layer PCBs (Rs 990 crore) and another for HDI PCBs via a JV (Rs 3,200 crore). Investments will be phased, with Amber expecting 60-65 per cent reimbursement from central and state governments over the six-year scheme.
In September, Amber also secured Rs 1,800 crore funding in its subsidiary ILJIN from private equity firms and raised another Rs 1,000 crore via a QIP, of which Rs 900 crore was used for deleveraging.
Syrma SGS: In July 2025, Syrma announced a 75:25 JV with Korea’s Shinhyup Electronics to enter PCB manufacturing with a $91 million capex, of which 40 per cent is expected to be subsidized by the government. In September 2025, it formed another JV (60:40) with Italian electronics firm Elemaster. Its new Bengaluru facility (20,000 squre feet) will house SMT, THT and box-build assembly lines. Syrma also raised Rs 1,000 crore through a QIP in Aug 2025, with Rs 750 crore used for deleveraging.
Dixon Technologies: The company has applied under ECMS for camera and display modules. It has also incorporated a subsidiary for lithium-ion battery cells, modules and related components, expanding its presence in the mobile ecosystem.
Kaynes Technology: Kaynes had already forayed into PCB manufacturing and OSAT before the ECMS launch. Jefferies expects its OSAT business to remain loss-making through FY27-28, with margins of 9-10 per cent once utilization ramps up. Kaynes raised Rs 1,600 crore via QIP in June 2025 (Rs 840 crore for debt repayment) and another Rs 1,400 crore in December 2023, including funding for OSAT and PCB initiatives.
India’s PCB industry is estimated at $5 billion, with nearly 90 per cent of demand met through imports. The government has imposed a 30 per cent anti-dumping duty on up to six-layer PCBs in H1-CY24, creating significant substitution opportunities for domestic players.