Syrma SGS to begin PCB trial production at Andhra plant by Dec 2026: MD

The EMS firm expects commercial production from its Andhra Pradesh plant by March 2027, with an investment of Rs 1,595 crore and plans to create over 2,000 skilled jobs, says MD J S Gujral

Electronic manufacturing services (EMS) firm Syrma SGS plans to start the trial production of printed circuit boards (PCB) from its upcoming Andhra Pradesh manufacturing unit by December 2026 to facilitate the commercial production from the unit by March 2027, the company’s Managing Director J S Gujral said.

 

“Once I start my trial production, I approach my customers for the approvals and other formalities. It is a very tall order for us, but we are trying our best,” Gujral told Business Standard.

 

The land for the plant had been provisionally allotted to the company and the process for registering it is underway, he said.

 

The PCB manufacturing plant, for which Syrma SGS has received the central government’s approval under the Electronics Component Manufacturing Scheme (ECMS), is located near Naidupeta in Tirupati district of Andhra Pradesh. The unit, spread over 7 lakh square feet, should be ready in the next 12-13 months, Gujral said.

 

“We expect to break ground for construction sometime in the next month. We have also given the plans for approval. I am confident that we should be able to start construction very soon,” Gujral said.

 

The total investment in the plant is likely to be ~1,595 crore and is expected to create 2,170 high-skill jobs. Overall, Syrma SGS is confident of crossing the 9 per cent earning before interest, taxes, depreciation, and amortisation (Ebitda) target for this financial year, Gujral said.

 

“What excites us are the new customers that we have onboarded, which are big-ticket size customers. They should be giving us the revenue from next year. We also expect our bracket of ~100-crore customers going up to about 20 by next year from the 10 we have currently,” he said.

 

These customers, Gujral said, are spread across the automotive, industrial, electrical vehicles, information technology, health and medical technologies, and railways. Owing to these customer wins, the company is confident of achieving the double-digit Ebitda growth by 2027-28, he said.

 

“All the steps that the management has taken over the last 12 months are focused on the long-term strategy that we have set for ourselves, which is also a global strategy,” Gujral said.

  Syrma SGS at present assembles laptops for Dynabooks, and Taiwan's MSI in India.

 

The company has a strong domestic presence in the combustible and electric vehicle segment, as well as in industrial electronics equipment manufacturing. The automotive segment contributes around 27 per cent in the total business, whereas the industrial electronics equipment business contributes about 30 per cent of the company’s revenue.