### **Overview** Syrma SGS Technology Limited is a leading Indian **Electronics System Design and Manufacturing (ESDM)** company with over **three decades of experience**, established in 1986. Headquartered in Chennai, the company has evolved into a globally competitive Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODM) provider, serving more than **300 customers across 20+ countries**. It operates 14 advanced manufacturing facilities in **India and Germany**, supported by multiple R&D and design centers, and reported **consolidated revenue of ₹3,836 crore in FY25**, reflecting strong growth momentum. The company’s core offerings include **Product Design, PCB Assembly (PCBA), Box Build, Rapid Prototyping, RFID Solutions, High-Frequency Magnetic Components, and End-of-Line Test Equipment Development**. Syrma SGS has strategically diversified into high-growth, high-margin verticals—**Industrial, Automotive & EV, Healthcare (MedTech), and Smart Energy**—while maintaining a strong foothold in **Consumer Electronics, IT, and Railways**. --- ### **Strategic Growth & Business Transformation** Syrma SGS has undergone a significant strategic recalibration since 2023, driven by market dynamics, government policies (Make in India, PLI schemes), and global supply chain shifts (China+1). The company has: - **Reduced reliance on low-margin Consumer Electronics**, which contributed ~35% of FY23 revenue, aiming to bring it down to **25–30% by FY26–27**. - Increased focus on **higher-margin segments**: Industrial (29% 3-year CAGR), Automotive (71%), and Healthcare (26%), with an **EBITDA margin improvement from 6.9% in FY24 to 8.6% in FY25 (peaking at 9.7%)**. - **Diversified into MedTech** via the **2023 acquisition of Johari Digital Healthcare (JDHL)** for ₹2,295 crore (51% stake), gaining FDA, MDSAP, and GMP-compliant manufacturing and 18 FDA 510(k)-cleared products. - Expanded its **ODM (Original Design Manufacturing) business to 12% of revenue**, with a long-term goal of **25%**, supported by the Syrma SGS Technology & Engineering Services (SETS) subsidiary. --- ### **Key Acquisitions & Joint Ventures (2024–2025)** #### **1. Joint Venture with Premier Energies & Acquisition of Ksolare Energy (Oct 2025)** - Syrma SGS and **Premier Energies** acquired **100% stake in Ksolare Energy Private Limited (KEPL)**, a Pune-based **solar inverter manufacturer**, in a **49:51 joint venture** for **INR 170 crore**. - KEPL specializes in **on-grid, off-grid, and hybrid residential solar inverters**, generating **INR 342 crore in FY25 revenue** with a production capacity of **500,000 inverters/year**. - This marks Syrma’s **entry into the residential solar inverter market**, aligning with India’s **PM Surya Ghar initiative**. - A **new brownfield plant in Pune** is planned to **scale capacity to 1 million inverters annually**, combining Syrma’s manufacturing excellence with Premier Energies’ sales network. - Mr. **Sunil Sinnarkar**, KEPL’s founder, will serve as **Executive Director** in the combined entity. #### **2. Acquisition of Syrma Johari MedTech (SJML)** - Full consolidation of **Syrma Johari MedTech Limited** (formerly JDHL), now a core MedTech ODM platform. - Focus areas: **diagnostics, aesthetics, physiotherapy, life sciences, and remote patient monitoring**. - **Pune-based MedTech Design Centre** established to accelerate innovation and regulatory readiness (FDA, MDR). - Expected to grow at **30%+ CAGR**, with long-term ambitions in **AI-integrated healthcare and personalized medicine**. #### **3. PCB Manufacturing JV with Shinhyup Electronics (Korea)** - Strategic joint venture announced in **FY25** to establish **multi-layer and flexible PCB manufacturing** in **Andhra Pradesh**. - Projected **1.5–2 million sq. meters annual capacity** across phases, with **$91 million capex**. - Supported by **Shinhyup’s process control expertise** and access to global OEMs. - Aims to exploit India’s **$5B PCB market** (90% imported), aligning with **anti-dumping duties and PLI incentives**. #### **4. Joint Venture with Elemaster Group (Italy)** - **Syrma SGS Elemaster Private Limited** launched in **Bengaluru** (20,000 sq. ft. facility). - Focus: **high-reliability electronics** for **Railway, Medical, and Industrial sectors**, targeting European OEMs. - Combines **Syrma’s low-cost scale** with **Elemaster’s R&D strength and EU customer base**. --- ### **Manufacturing & R&D Capabilities** - **14 manufacturing units** across **Chennai, Pune, Bengaluru, Manesar, Noida, Gurgaon, Baddi, Jodhpur**, and **Germany**. - Total **commissioned area: ~1.16 million sq. ft.**, expandable to **1.2 million sq. ft.** at the Pune mega campus (26.5 acres). - **23 SMT lines**, including **Fuji pick-and-place machines**, 3D X-ray inspection, nitrogen reflow, robotic soldering. - **In-house production capabilities**: - Advanced **PCBA** (down to 12 mil pitch, ±25 micron accuracy). - **Box build solutions** with firmware loading, validation, and direct-to-warehouse dispatch. - **RFID tags & readers** for FASTag, asset tracking, and industrial safety. - **BLDC motor modules** for fans (high efficiency, quiet, precise control). - **High-frequency magnetics** (transformers, chokes, inductors up to 500W, 300kHz). - **R&D Strength**: - **4 global R&D centers** (Gurgaon, Pune, Chennai, Stuttgart). - Dedicated team of **270+ engineers (13.1% of workforce)**, including 7 PhDs. - Focus on **IoT, 5G, EVs, Industry 4.0, and medical electronics**. - **SETS Labs** drives DFM, VA/VE, rapid prototyping, reducing time-to-market by **30%**. --- ### **Sector Focus & Growth Drivers** #### **1. Healthcare (MedTech)** - Fast-growing vertical via **SJML**, targeting **regulatory-compliant (FDA, MDSAP) medical devices**. - Products: **diagnostics, physiotherapy devices, digital X-rays, smart canes, dispensers**. - Recent wins: **medical ventilator PCBAs (South America), in-vitro diagnostics (OEM partner)**. #### **2. Automotive & EV** - Supplies **BMS units, motor controllers, infotainment, ADAS, and lighting systems** to OEMs. - Partner to a **global EV charging solutions provider** (PCBAs and battery management). - Positioned under government’s **ACC battery scheme and EV policies**. #### **3. Industrial** - Offers **smart energy meters, solar controllers, power supplies, industrial automation**. - **PLI scheme** beneficiary for **telecom, white goods, and IT manufacturing**. - Targeting **Industry 4.0 and smart city solutions (5G, IoT, smart metering)**. #### **4. Renewable Energy & Smart Grid** - Entry into **solar inverters** via KEPL. - Expects **strong growth from PM Surya Ghar, net-metering policies**. - Also supplies **controllers for energy storage and EV charging infrastructure**. #### **5. Defense & Railways** - **RDSO-approved** facilities; developing products for signaling, braking, and door controllers. - Exploring defense EMS opportunities in **communication, radar, and jamming systems**. - Railway segment currently ~5% of revenue, targeted to grow to **20% in 3–5 years**. #### **6. IT & Consumer Electronics** - PLI-approved IT hardware manufacturer; **ODM partner for MSI, Dynabook (laptops, SSDs, motherboards)**. - Active in **FASTag, BLDC systems, 5G devices, water purification systems**. - Consumer segment contributes ~30% of revenue, with focus shifting toward **smart, IoT-enabled devices**. --- ### **Financial & Operational Highlights (FY24–FY25)** | Metric | FY24 | FY25 | |-------|------|------| | **Revenue (Consolidated)** | ₹3,212 crores | ₹3,836 crores (**+19% YoY**) | | **EBITDA** | ₹2,188 crores | ₹3,238 crores (**+48% YoY**) | | **EBITDA Margin** | 6.8% | 9.7% (peaked in H2) | | **Export Revenue** | ~₹822 crores | ~₹860 crores (+29% YoY in H1) | | **Order Book** | ~₹4,500 crores | ₹5,200–5,400 crores | | **New Customers Added** | 8–10 | 20–25 | | **Manufacturing Footprint** | 1.1 million sq. ft. | 1.16 million sq. ft. | **FY26 Outlook**: - **30–35% revenue growth** expected. - **Exports target: ₹1,100+ crore** (25–30% of total revenue). - **EBITDA margin: ~8% sustainably**. - Capex to be funded via **IPO proceeds (₹700 crore), internal accruals, and ₹1,000 crore QIP (Sep 2025)**. --- ### **Government & Strategic Enablers** - **PLI Scheme Approvals** in **Telecom & Networking, White Goods (ACs, LED lights), and IT (laptops, motherboards)**. - Beneficiary of **ACC Battery Storage Scheme, Make in India, Semicon India, and PM Surya Ghar**. - **RFID leadership** in India, supplying to **NHAI for FASTag** program.