India’s electronics manufacturing industry is entering a new phase, with leading Electronics Manufacturing Services (EMS) companies increasingly moving beyond high-volume consumer electronics and into higher-margin segments such as defence, aerospace, automotive, healthcare, industrial automation, and telecom equipment. The shift reflects a growing focus on profitability, diversification, and long-term growth.
Major players including Dixon Technologies, Syrma SGS Technology, Amber Enterprises India, and Kaynes Technology India are expanding into specialised areas such as defence electronics, medical devices, industrial automation, power electronics, and electric vehicles.
Dixon Technologies has identified specialty EMS as a major growth driver for its next phase. The company has appointed a specialist to lead its high-margin business initiatives and is also working to improve profitability in display and camera module manufacturing. Chairman and Managing Director Atul Lall said, “High-end specialty EMS business is a part of our next phase of transformational growth.” The company has also engaged a global consulting firm to create a roadmap for scaling its presence in aerospace, defence, automotive, medical, and industrial electronics, including evaluating merger and acquisition opportunities.
At Syrma SGS Technology, automotive, industrial, and healthcare electronics are expected to be key growth drivers in FY27. Managing Director Jasbir Singh Gujral said, “All the key drivers of superior margin, i.e. automotive, industrial, healthcare, exports and ODM, they’re all fired in the right direction.” The company is also investing in medical technology, defence electronics, and PCB manufacturing, which is expected to contribute significantly over the next 2 years.
Amber Enterprises is expanding beyond its core air-conditioner business into PCB manufacturing, industrial automation, power electronics, automotive electronics, aerospace and defence, medical electronics, and data-centre cooling. Executive Chairman and CEO Jasbir Singh stated, “Our endeavour is going towards the value side of the businesses.”
Meanwhile, Kaynes Technology is focusing on becoming a product and design-led company. Managing Director Muthukumar Narayanaswamy said the company aims to increase the contribution of new product development and value-added offerings to around 30% of revenue over time. Investments are being made in engineering, R&D, digital infrastructure, and customer co-development.
Industry analysts believe the next growth phase for India’s EMS sector will depend on moving up the value chain. While government incentives and volume-led manufacturing have supported growth so far, future expansion is expected to be driven by specialised, technology-intensive segments, stronger exports, higher localisation, and greater participation in value-added electronics manufacturing.
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