Indian PCB market will hit $10 billion by early next decade: J S Gujral

The Indian market today is estimated to be around $6 billion, which is expected to cross $10 billion by early next decade, says Gujral

Early this month, Chennai-based electronics manufacturing services (EMS) player Syrma SGS Technology made headlines with its plan to set up India’s largest multi-layer printed circuit board (PCB) unit in Andhra Pradesh. This development is significant, as PCBs are essential components in most electronic devices, serving as the foundation for mounting electronic parts. In a video interview with Shine Jacob, the company’s Managing Director, J S Gujral, discusses the company’s expansion plans and shares insights on the future of the electronics industry. Edited excerpts:

  

What is the status of your planned ₹1,800 crore investment in Andhra Pradesh for the largest PCB and copper-clad laminate (CCL) unit?

 

The deal has been signed. The starting point of the project will be the approval of the production-linked incentive (PLI) application, which we have already filed with the Centre. The scheme is expected to be closed on July 31. Once we get the approval, the state government incentives will also fall in place without further appraisal.

  

We have already filed our application with the state for allotment of land at Naidupeta and shared the project details with them. We are ready to start once the PLI is cleared. Trial productions will start in 2026–27, and commercial production is likely by 2027–28.

  

Andhra Pradesh is offering a proactive policy. Plus, this location is just 35 minutes from Tirupati, which is also becoming a hub of electronics manufacturing.

  

What will be South Korean major Shinhyup Electronics' role in the project?

 

They are the technology providers and will have a 24 per cent equity partnership. We want the partner to have skin in the game and participate in the growth of the venture. They will also work on training, setting up the processes, and help in running the plant for some time by placing their officials to handhold. They will also give us access to their customers in the global market and guidance in process control too.

  

Last year, anti-dumping duty was imposed on bare PCBs. How did it reflect on the Indian market?

 

Currently, Indian companies are unable to produce even the PCBs required for mobile phones. Whatever the production capacity in India, around 60 per cent is controlled by about a dozen companies now. The market in India for PCBs is huge.

  

The Indian market today is estimated to be around $6 billion, which is expected to cross $10 billion by early next decade. Out of that, 10 per cent is made in India, and the rest is imported. The industry offers a very good opportunity for organised players to come in who have the capacity for high-volume production. Once the Indian PCB industry attains scale, it will become competitive. Today, because of the protected environment, the Indian PCB industry is not very competitive. Once bigger players come in, we will be able to tap the global market. In addition to the PLI by the Centre, states are also providing good incentives for the sector to grow.

  

Will raw materials still be a concern for India?

 

I believe that for the industry, the bulk of its raw material sourcing may continue to be from China for some time till capacities in India come up. China had a free run for 30 years that no country can reach immediately. We are two decades behind them now.

  

It is a viable sector, but the Indian industry should be willing to invest in technology. There should be a long-term vision for the industry, even at the expense of short-term pain.

  

How do you see the demand coming from the auto industry, especially EVs, ADAS, etc.?

 

Typically, a bare PCB accounts for around 3–5 per cent of the total value of the product. As the electronic content in any application goes up, the requirement for PCBs will go up. Around 24 per cent of our revenue comes from the automobile industry. We believe that this will be a good backward integration.