Who is driving India’s Rs. 5,532 crore investment?

The government has approved the first seven projects under the Electronics Components Manufacturing Scheme (ECMS), committing a total investment of Rs. 5,532 crore. This initial approval tranche focuses on crucial high-value components and materials, involving four major companies.

The approved units will manufacture Multi-Layer Printed Circuit Boards (PCBs), High-Density Interconnect (HDI) PCBs, Camera Module Sub-Assemblies, Copper Clad Laminates (CCL), and Polypropylene Films. These projects are spread across Tamil Nadu (5), Andhra Pradesh (1), and Madhya Pradesh (1).

Company-wise project breakdown

Kaynes Circuits India secured the largest share of the initial approvals, committing a substantial investment across four separate projects in Tamil Nadu. The company will produce a diverse range of high-demand items.

The four projects approved for Kaynes Circuits India are:

• Manufacturing of Multi-Layer Printed Circuit Boards (PCB).

• Production of Camera Module Sub-Assembly.

• Production of HDI PCB.

• Manufacturing of Laminates, which includes the critical base material Copper Clad Laminate (CCL).

Kaynes Technology, the parent company, stated that this investment, totaling approximatelyRs. 3,280 crore, will establish facilities in locations like Chennai and Thoothukudi, creating a integrated electronics manufacturing hub.

Syrma Strategic Electronics, a subsidiary of Syrma SGS Technology, received approval for a single large project. This unit, located in Andhra Pradesh, will focus on manufacturing Multi-Layer Printed Circuit Boards (PCB), requiring an investment of Rs. 765 crore.

Ascent Circuits, a part of the Amber group, also secured approval for a major PCB project. The company's investment of Rs. 991 crore will establish a facility in Tamil Nadu for the production of Multi-Layer Printed Circuit Boards (PCB).

SRF Limited is the final company in the first batch, focusing on a strategic base material for capacitors. The company will invest Rs. 496 crore to manufacture Polypropylene Film in Madhya Pradesh, a component vital for sectors like consumer electronics and automotive systems.

Strategic component production

These initial approvals concentrate on components that will deliver immediate and high-impact reductions in India's import dependency.The Kaynes project for laminates, specifically CCL, is a breakthrough, enabling India to meet 100% of its domestic demand for this fundamental PCB material for the first time.

The projects by Kaynes, Syrma, and Ascent Circuits will cumulatively meet an estimated 20% of India's domestic PCB demand. These boards are the central connection units in almost every electronic product.

While Kaynes' project will meet approximately 15% of the domestic demand for camera module sub-assemblies, key components for smartphones, drones, and medical devices.

Collectively, these seven projects represent a planned production output worth over Rs. 36,559 crore and will generate over 5,100 direct jobs. Furthermore, the companies have earmarked 60% of this production for export, positioning India as a global source for these electronic components.