India’s electronics manufacturing sector saw a fresh wave of optimism as shares of leading EMS companies like Kaynes Technology, Syrma SGS, and SRF surged in early trade. The rally came after the government announced the approval of seven projects worth ₹5,532 crore under the Electronics Component Manufacturing Scheme (ECMS).
Market Performance
On Monday, EMS stocks outperformed broader indices, with strong buying seen across the segment.
- Syrma SGS Technology jumped over 6%, touching an intraday high of ₹800.85 before easing to ₹786.05.
- Kaynes Technology rose more than 2%, trading around ₹6,886.50 apiece.
- SRF opened strong but later gave up early gains, despite posting a sharp rise in quarterly profit.
The uptrend was driven by renewed market sentiment after the government’s announcement supporting large-scale electronics component manufacturing.
Government Clears ₹5,532 Crore Projects Under ECMS
In a major policy push, the Indian government approved seven projects worth ₹5,532 crore in investment and ₹44,406 crore in projected output under ECMS.
These approvals mark the first set of projects cleared under the scheme, designed to boost domestic component manufacturing and reduce import dependence.
Key Highlights
- Investment Approved: ₹5,532 crore
- Projected Output: ₹44,406 crore
- Employment Generation: Over 5,000 jobs in Phase 1
- States Involved: Tamil Nadu to host five of the seven projects
Companies in Focus
The approved companies are some of the most active names in India’s EMS space:
- Kaynes Circuits India (subsidiary of Kaynes Technology) received approval for four projects, covering production of PCBs, HDI boards, camera modules, and laminates.
- SRF Ltd. will manufacture polypropylene films, a vital component used in capacitors and electrical equipment.
- Syrma Strategic Electronics (subsidiary of Syrma SGS) and Ascent Circuits will both produce multi-layer PCBs, which are critical for sectors such as consumer electronics, defence, and aerospace.
Together, these projects form the backbone of India’s goal to localize high-value components in the global electronics supply chain.
Electronics Component Manufacturing Scheme (ECMS) Overview
The ECMS was introduced to encourage component-level manufacturing in India. The scheme has seen unprecedented industry interest, with the Ministry of Electronics and IT (MeitY) receiving 249 applications totaling ₹1.15 lakh crore in investment commitments — nearly double the initial target of ₹59,350 crore.
Scheme Targets vs Actual Proposals
- Initial Target Investment: ₹59,350 crore
- Actual Applications Received: ₹1.15 lakh crore
- Projected Production Value: ₹10.34 lakh crore
- Employment Potential: 1.41 lakh (vs earlier estimate of 91,600)
Electronics and IT Minister Ashwini Vaishnaw highlighted that the approved components — such as multi-layer PCBs, copper laminates, camera modules, and polypropylene films — are the building blocks of today’s electronics manufacturing ecosystem.
He highlighted that India is now set to meet 20% of its domestic PCB demand, 15% of camera module needs, and 100% of copper laminate requirements through these new projects.
Company Earnings Snapshot: SRF Q2 FY26
Amid the sector’s upbeat sentiment, SRF reported strong quarterly numbers:
- Net Profit: ₹388 crore (up 93% YoY from ₹201 crore)
- Revenue from Operations: ₹3,640 crore (up 6% YoY)
The company’s growth reflects healthy demand across its specialty chemicals and packaging film segments, providing a supportive backdrop for its ECMS-linked plans.
Summary
The government’s approval of ₹5,532 crore worth of ECMS projects marks a defining step in India’s push for electronics self-reliance.
With major EMS players like Kaynes Tech, Syrma SGS, and SRF leading the charge, the market’s reaction shows investors’ confidence in the long-term growth potential of the sector.
The move is expected to create thousands of jobs, boost manufacturing capacity, and strengthen India’s position in the global electronics value chain — signaling a new growth phase for the country’s EMS ecosystem.
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