Syrma SGS Technology is an integrated electronics design and manufacturing partner that builds the brains inside products for global brands - from the circuit board in your smart meter to the navigation system on a naval warship. Founded in 1990 and exporting since 1996, the company has grown from a domestic manufacturer into a product-led, export-oriented organisation through a series of deliberate moves: acquiring specialist firms, building mega-factories, and forming joint ventures with Korean and European technology leaders. The recurring approach that explains everything else is a relentless focus on cost control and frugal buying, which management says gives it a far better cost structure than big corporates, combined with a strategy of moving steadily up the value chain from build-to-print manufacturing to own-design products. # Business segments Five engines at different stages - a diversified manufacturing platform spanning automotive, industrial, consumer, healthcare, and railway electronics, now extending backward into printed circuit boards and forward into defence and maritime systems - each built by deepening customer relationships from assembly to original design. ## 1. Electronics Manufacturing Services and Original Design Manufacturing: the factory floor where everything begins **The company earns revenue by designing, assembling, and testing electronic products for over 350 OEM customers, operating on both a build-to-print model and an own-design model that is steadily claiming a larger share of the mix.** - **Paid per unit or per contract** - revenue comes from OEM customers on a per-unit or per-contract basis, covering everything from bare printed circuit board assembly (PCBA) to fully finished box-build products shipped directly to customer warehouses. - **Two business models, one factory** - the company operates on both EMS (build-to-print, where the customer provides the design) and ODM (own-design, where Syrma creates the product), with ODM revenue jumping 80% year-on-year to reach 17% of total revenue in FY26, up from 12% the year before. - **The campus is the capacity** - 17 manufacturing facilities with 1.27 million square feet of commissioned plant area house Fuji SMT lines that doubled placement capacity in a single year to 6.3 million component placements per hour, replicating in one year what took three decades to build. - **Certifications unlock regulated industries** - the company holds IATF 16949 for automotive, AS9100D for aerospace and defence, MDSAP and ISO 13485 for medical devices, and IRIS ISO 22163 for railways, which means it can serve customers in sectors where quality audits are a barrier to entry. - **Cost structure is the moat** - management attributes competitive advantage to a far better cost structure than big corporates, achieved through frugality and efficient buying, which allows it to compete with Tier 2 global EMS companies while generating enough cash to move from a net debt position to a net cash position of INR 467 crores in a single year. ## 2. Industrials: the steady anchor in utility metering and power electronics **The company is one of India's largest contract manufacturers in the energy metering space, producing roughly 4 million units annually, and has been in this business for 19 years - a long-tenured supplier position that generates recurring demand.** - **Leadership in smart metering** - the company is one of the largest players in the smart metering business with formidable clients, and the industrial vertical has grown at a 29% compound rate over five years. - **Beyond meters** - the product range extends to industrial power supplies, solar controllers, industrial cleaning equipment, and connectivity products, serving customers like Phoenix Contact and Total Power Europe. - **Customer migration, not churn** - the industrial vertical shows a secular migration from one customer to another and the addition of new customers, so the revenue base broadens over time rather than depending on a single relationship. ## 3. Consumer: own-design products, deliberately kept below a ceiling **The company makes smart consumer electronics - BLDC motor modules for fans, water purification systems, Wi-Fi routers, and RFID-based FASTag modules - primarily on an ODM basis where it owns the design, and it consciously caps this vertical below 35% of total revenue to maintain portfolio balance.** - **ODM-first in consumer** - in the consumer segment, the company primarily caters with ODM products where it owns the design, alongside vanilla EMS for customers like Eureka Forbes, Hindustan Unilever, Atomberg, and A.O. Smith. - **The 35% ceiling** - management deliberately keeps the consumer vertical below 35% of revenue, having strategically reduced it from 46% in Q4 FY24 to 30% by FY26, because consumer electronics can be more volatile and the company wants no single segment to dominate. - **RFID is the hidden strength** - the company was the 1st in India to manufacture RFID products and pioneered RFID manufacturing in the country, producing tags, inlays, and custom multi-protocol readers for FASTag, asset tracking, and access control. ## 4. Automotive and Electric Mobility: riding the EV wave with a 54% five-year growth rate **The company designs and manufactures electronic components for both internal combustion engine vehicles and the electric mobility ecosystem - battery management systems, motor controllers, on-board chargers, and body electronics - serving OEMs like TVS as India's EV penetration scales toward 30% by 2030.** - **Everything from charging to airbags** - the product catalogue spans EV charging infrastructure, battery management systems, motor controller units, engine control units, ABS, infotainment PCBA, driver monitoring systems, and safety airbags. - **Secular growth, not a single customer bet** - the automotive vertical shows a secular migration from one customer to another and the addition of new customers, so growth is not tied to the fortunes of any one OEM. - **A 54% compounder** - the segment has grown at a 54% revenue CAGR over five years, driven by demand for EV components, battery management systems, and charging infrastructure, with India's auto electronics market projected to grow at 22.3% CAGR on the back of EV and ADAS adoption. ## 5. Healthcare and Medical Devices: an FDA-compliant ODM factory inside a subsidiary **Through its subsidiary Syrma Johari Medtech Limited, the company designs and manufactures medical devices - from digital X-ray to muscle toning equipment - in a facility that is fully compliant with US FDA regulations, MDSAP, and Good Manufacturing Practices, serving global markets in aesthetics, diagnostics, physiotherapy, and life sciences.** - **Bought, not built from scratch** - the acquisition of Johari Digital Healthcare Limited in 2023 brought 15-18 FDA-approved products, a 40-year operating history, and design centres in Serbia, adding regulatory credentials that would take years to build organically. - **Design and production under one roof** - the facility integrates R&D, prototyping, regulatory documentation, and scalable production, and a dedicated MedTech Design Centre in Pune was commissioned in 2025 to expand the ODM pipeline. - **A small base growing into a large market** - the segment contributed 8% of revenue in FY26 and grew 36% year-on-year, while the global MedTech market is roughly $810 billion and targeting $1 trillion by 2030. ## 6. Railways and IT: the fastest-growing engine, fuelled by government capex **The company manufactures signalling systems, braking systems, and cab equipment for railways, and has secured contracts with global laptop brands to assemble 'Make in India' notebooks - a dual-use segment that grew 74% in FY26 and 182% in the final quarter alone.** - **RDSO approval opens the door** - the company received RDSO (Research Designs and Standards Organisation) approval for one of its facilities, which is the regulatory key that enables engagement with the Indian railways sector. - **Laptops are the new addition** - the company has a partnership with MSI to manufacture 'Make in India' laptops at its Chennai facility, and secured a second such order from Dynabook Singapore in calendar year 2025, starting with assembly and moving toward fuller integration. - **Riding the capex wave** - the railway sector has a INR 2.62 lakh crore capital expenditure allocation in FY26, the highest ever, and the Kavach automatic train protection rollout across 10,000-plus kilometres is driving demand for electronics modules. ## 7. Defence and Maritime Electronics: a 47-year Navy supplier brought into the fold **Through the acquisition of a 60% stake in Elcome Integrated Systems in December 2025, the company entered the defence and maritime electronics sector, gaining a trusted supplier to the Indian Navy and Coast Guard with 60% own intellectual property on sovereign-critical products like integrated bridge systems and navigation radars.** - **A moat built over decades** - Elcome has 47-plus years as a Navy and Coast Guard trusted supplier, with key customers including Mazagon Dock, L&T, DRDO, and Bharat Electronics, and 60% of its products are own-IP, which is rare in Indian defence electronics. - **The Atmanirbhar tailwind** - roughly 75% of defence procurement is now reserved for domestic players under Atmanirbhar Bharat policy, with over 500 items under indigenisation lists and a 200-plus vessel naval expansion pipeline by 2037. - **A path to full ownership** - the acquisition was structured in four tranches, with the first 60% completed for approximately INR 235 crore, and the remaining tranches to be completed by December 2028 based on agreed performance milestones, taking Syrma to 100% ownership. # Backward integration: the PCB joint venture that completes the stack **The company is building India's first large-scale multilayer printed circuit board platform through a 75:25 joint venture with Shinhyup Electronics of South Korea, creating a complete in-house chain from bare PCB to PCBA to box build to finished system - a move that addresses India's INR 80,000-plus crore annual PCB import bill.** - **From import to in-house** - India currently produces only about 10% of its PCB demand domestically, and the JV's Naidupeta plant in Andhra Pradesh will have Phase 1 capacity of roughly 1.2 million square metres, with Phase 2 adding HDI and flex PCBs. - **Commercial operations targeted by March 2027** - the plant is located on 24 acres, 108 kilometres from Chennai port, and is expected to create over 1,000 direct jobs. # Group structure and partners **The listed parent entity, Syrma SGS Technology Limited, operates through a network of subsidiaries and joint ventures that each serve a specific technology or market purpose - MedTech through SJML, RFID through Perfect ID, defence through Elcome, PCBs through the Shinhyup JV, and high-reliability European electronics through the Elemaster JV.** - **Syrma Johari Medtech Limited (SJML)** - a 51%-owned subsidiary acquired in 2023, operating an FDA-compliant and MDSAP-certified medical device ODM facility, with its own US subsidiary. - **Perfect ID India Private Limited** - a 100% subsidiary acquired in 2021 that anchors the company's RFID manufacturing leadership. - **Elcome Integrated Systems Private Limited** - 60% acquired in December 2025, with a path to 100% by December 2028, bringing 47-plus years of defence and maritime electronics expertise and a wholly owned subsidiary, Navicom Technology. - **Shinhyup Syrma Circuits Private Limited** - a 75:25 JV with South Korea's Shinhyup Electronics for large-scale multilayer PCB manufacturing in Andhra Pradesh. - **Syrma SGS Elemaster Private Limited** - a 60:40 JV with Italy's Elemaster S.P.A, a EUR 420 million-revenue mechatronics provider, creating a high-reliability EMS platform in Bengaluru for railway, industrial, and medical electronics with access to over 200 European OEM relationships. - **Kaga Electronics JV** - an agreement signed in June 2026 to establish a JV with Japan's Kaga Electronics (Syrma up to 60%) to develop an EMS facility in India focused on Japanese clients.