India’s electronics manufacturing services sector to reach Rs 6 lakh crore in FY27: Motilal Oswalthe

Driven by government initiatives like production-linked incentive (PLI) scheme, electronics manufacturing services (EMS) sector is likely to grow to Rs 6 lakh crore in FY27 from Rs 1.46 lakh crore in FY22, and do well over short to medium term, a report showed on Monday.

The electronics manufacturing sector is on the cusp of a transformative journey, projected to grow at a robust CAGR of 26 per cent between the calendar year 2023-2030, reaching $500 billion.

India is emerging as a preferred global destination for electronics manufacturing due to increasing assembly activities and unprecedented demand in the electronics manufacturing services (EMS) sector, particularly in mobile phones, automotive, and industrial segments, according to the report by Motilal Oswal Wealth Management Ltd.

Favourable government policies such as the PLI schemes and the Semicon India programme, increasing domestic demand, and a robust push toward self-reliance is further propelling the opportunity.

Motilal Oswal Wealth Management designed a basket with five companies which would benefit from substantial growth opportunities in the EMS space.

CG Power is engaged in the design, manufacturing, and marketing of products related to power generation, transmission, and distribution. It manufactures voltage motors, breakers, switchgears and power monitors.

Another domestic company is Dixon Technologies which is benefitting from strong volumes in existing mobile customers.

“We expect Dixon to continue to benefit from its market leading position across segments, addition of new segments, backward integration and ODM mix improvement,” the report mentioned.

Kaynes Technology is a prominent end-to-end and IoT-enabled integrated electronics manufacturer driven by a healthy order book growth trajectory and a better margin profile.

It is rapidly scaling up its smart meter business and is expected to clock $1 billion revenue by FY28 and triple its revenue by FY29.

Amber Enterprises is adding new customers in segments such as automotive, defence medical, and telecom and is targeting to grow its electronics division at a fast pace.Syrma SGS engaged in EMS serves diverse end-use industries like automotive, healthcare, consumer products, Industrial, IT and Railways. It has recently received PLI approvals in med-tech (Cancer Care & Anesthetic Devices), starting FY26, according to the report.

Meanwhile, the government is planning to soon roll out incentives worth billions of dollars for domestic companies to manufacture deeper components. The upcoming scheme is likely to provide incentives for manufacturing critical components such as printed circuit boards (PCBs) for devices such as laptops and foster deeper local supply chains, according to reports.