Latest news with #Kaynes
Time of India
6 hours ago
- Business
- Time of India
Indian contract manufacturers go global: Firms tap tariff-led supply gaps; analysts flag ROI risks
AI-generated image Indian electronic contract manufacturers are expanding globally through acquisitions and strategic partnerships to gain access to clients in the US, Europe, and other international markets. They are capitalising on supply chain disruptions triggered by tariff-related shifts, particularly those involving China. These companies are leveraging the current trade environment to acquire technologies and capabilities that would otherwise take years to develop internally. Their strategy aligns with the Indian government's push to strengthen domestic electronics manufacturing and increase exports. 'Given the small window of opportunity, companies are taking the shortcut route of acquisitions to tap into clients looking to establish alternative supply chains beyond China. The idea is that you can sell not only what the target entity is selling, but also your own expertise and products,' a senior executive from a contract manufacturing firm told ET. Firms including Kaynes, Dixon Technologies, Syrma SGS, Cyient, and Amber Group are actively pursuing overseas deals to enhance their technological strength and global market presence. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Beautiful Women In The World Undo Amber Group, which specialises in consumer durables and electronics, is investing over Rs 400 crore to acquire a controlling stake in Israel-based Unitronics, an industrial automation company. At the same time, Calcom Vision is setting up an export-focused division. 'Amber's acquisition is driven by the need to cater to aerospace and defence globally, which requires specific certifications. Acquiring a company that already possesses these certifications is crucial for Indian players tapping into global markets, as obtaining them independently is challenging and time-consuming,' said an industry analyst, requesting anonymity. The deal gives Amber Group access to defence-sector clients in the US and Europe- both regions seeing increased defence spending amid ongoing conflicts in Ukraine and Gaza. Dixon Technologies, meanwhile, has formed joint ventures with several Chinese component manufacturers to gain access to technology, with total investments exceeding Rs 1,000 crore in equity and capacity expansion. Kaynes and Syrma SGS have partnered with Korean firms to enter the printed circuit board (PCB) segment. Both have also acquired stakes in companies in the US, Austria, and Germany to tap into their existing customer networks. Syrma SGS reported Rs 232 crore in industrial component exports during the June quarter, marking a 29 percent sequential rise. 'Exports, we are primarily doing to Western Europe and the USA. The tariff uncertainty is definitely holding back customers from receiving large orders. Hopefully, within this quarter, this uncertainty will be a thing of the past,' Syrma SGS managing director Jasbir Gujral said during a recent earnings call. Calcom, which manufactures LED lighting and ceiling fans, is relaunching its export division in response to rising demand for diversified supply chains, according to executive director Abhishek Malik. 'The tariff wars are the trigger for us to re-enter the export business after the pandemic. Two US companies have already audited us and our products are currently undergoing testing. We expect to hear from them by the end of the month,' Malik said, as quoted by ET. India currently faces tariffs of 10–15 percent on lighting exports to the US under deferred reciprocal duties, while Washington's stance on tariffs on Chinese goods remains uncertain. Should the balance tilt in India's favour, Malik anticipates significant interest from US brands, especially in lighting and fan categories. However, analysts warn that the ongoing wave of acquisitions could raise concerns among investors about capital allocation and delayed returns. 'Investors could be worried that money is constantly being reinvested into the market in the form of new investments and acquisitions, but they are not seeing peak asset turns. Returns are being deferred, meaning investors have to wait longer to realise their profits,' an analyst said, as quoted by ET. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
18 hours ago
- Business
- Time of India
Electronics makers shop for cos to tap western clients
Indian contract manufacturers of electronics goods are acquiring or partnering with companies globally to get access to their clients in the US, Europe and other markets, trying to tap into the opportunity from the tariff turmoil that has triggered a search for alternative supply chains . They are also using this opportunity to acquire new technologies and capabilities, which would otherwise take years to develop in-house even as there is uncertainty over how long India's tariff advantages will last amid intense trade talks among countries. The development aligns with the government's push for self-sufficiency in electronics manufacturing and increasing exports from India . Explore courses from Top Institutes in Please select course: Select a Course Category "Given the small window of opportunity, companies are taking the shortcut route of acquisitions to tap into clients looking to establish alternative supply chains beyond China. The idea is that you can sell not only what the target entity is selling, but also your own expertise and products," a top executive from a contract manufacturing firm told ET. Companies like Kaynes , Dixon Technologies , Syrma SGS, Cyient , and Amber are actively acquiring and partnering with companies to access new technologies and tap into the global market. Live Events Consumer durables and electronics maker Amber Group is spending more than ₹400 crore to acquire a controlling stake in Israel-based industrial automation company Unitronics. Calcom Vision is setting up a unit to steer exports. "Amber's acquisition is driven by the need to cater to aerospace and defence globally, which requires specific certifications. Acquiring a company that already possesses these certifications is crucial for Indian players tapping into global markets, as obtaining them independently is challenging and time-consuming," said an industry analyst, who did not wish to be named. The acquisition provides the Amber Group with access to US and European clients in the defence industry, which is experiencing significant traction since the Ukraine and Gaza conflicts, he said. Dixon has formed joint ventures with several Chinese component makers to acquire technology, investing over ₹1,000 crore in equity and capacity-building. Kaynes and Syrma SGS have partnered with Korean companies to enter the PCB segment. They have also acquired stakes in US, Austrian and German companies to get access to their global clients. Kaynes and Cyient did not respond to emails seeking comment, while the Amber Group declined to comment. Syrma SGS posted a 29% sequential increase in exports of industrial components during the June quarter at ₹232 crore. "Exports, we are primarily doing to Western Europe and the tariff uncertainty is definitely holding back customers from receiving large orders. Hopefully, within this quarter, this uncertainty will be a thing of the past," Syrma SGS managing director Jasbir Gujral said during a recent earnings call. LED lighting and ceiling fan maker Calcom is setting up a unit to steer exports amid rising demand for alternative supply chains, executive director Abhishek Malik said. "The tariff wars are the trigger for us to re-enter the export business after the pandemic. Two US companies have already audited us and our products are currently undergoing testing. We expect to hear from them by the end of the month," Malik said. India currently faces a 10-15% tariff for lighting products exported to the US under the deferred reciprocal tariffs, while Washington's tariffs on China are unclear right now. If the tariffs work in India's favour, Malik sees a bulk of US brands working with Indian manufacturers, especially in lighting and fans. However, analysts warned that multiple acquisitions present concerns for investors regarding frivolous allocation of capital and returns. "Investors could be worried that money is constantly being reinvested into the market in the form of new investments and acquisitions, but they are not seeing peak asset turns. Returns are being deferred, meaning investors have to wait longer to realise their profits," an analyst said.
Business Upturn
09-07-2025
- Business
- Business Upturn
Kaynes Technology shares surge 3% after JPMorgan initiates coverage with ‘Overweight' rating, sees robust growth in EMS sector
By Aman Shukla Published on July 9, 2025, 10:02 IST Kaynes Technology shares gained 3% in early trade after JPMorgan initiated coverage with an 'Overweight' rating. The brokerage highlighted the company's strong revenue growth potential, projecting a compound annual growth rate (CAGR) of 46% over FY25–28. Kaynes aims to reach $1 billion in revenue by FY28. JPMorgan also pointed to broader sector tailwinds, calling India's Electronic Manufacturing Services (EMS) industry a 'sunrise sector,' with an expected 32% CAGR from FY25 to FY30. Growth drivers include higher electronics demand, government-led manufacturing incentives, and global supply chain shifts. Kaynes Technology stock opened at ₹6,070.00 and touched an intraday high of ₹6,238.00, while the low remained at the opening level. The current price action keeps the stock well below its 52-week high of ₹7,822.00 but comfortably above its 52-week low of ₹3,726.00. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
03-07-2025
- Business
- Mint
Made in India semiconductor chips are in focus. Watch out for these 5 stocks
There is big news from the Indian semiconductor sector. Kaynes Semicon, a subsidiary of Kaynes Technology, is setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. It has secured its first anchor client in the US, Alpha & Omega Semiconductor (AOS) and has developed the first Made in India prototype chip sample. The sample will now be sent for qualification to AOS in August. It's the first company in India to reach this important milestone. In September 2024, the government had approved five companies under the Indian Semiconductor Mission (ISM) to set up facilities to kickstart the semiconductor manufacturing ecosystem in India. To that end, Kaynes has set up a 1,000 sq. ft. OSAT facility in Sanand CG Power and Micron Technology also have facilities there. As per media reports, Kaynes will begin production – the commercial rollout of Made in India chips – in the first quarter of next year, i.e. 2026, after it the qualification process is complete. It's plant has an initial capacity of 1.5 million chips per day. The company has invested about $22 crore for the same. It will invest another $22 crore to make more complex chips once the initial capacity is up and running. Kaynes has a five-year agreement with AOS for about 60% of the initial capacity. The company is in talks with many global chip firms for OSAT. These are the likes of ST Microelectronics, Broadcom, Intel, ROHM Semiconductor, Infineon Technologies and others. This news has once again ignited interest in Indian Semiconductor stocks. Here are five Indian semiconductor companies you should have on your watchlist… #1 Moschip Technologies Moschip Technologies is a semiconductor and system design services company. The company has over two decades of experience in silicon design and embedded solutions. The company operates across the entire chip design spectrum from concept and architecture to final silicon and system validation. It specialises in ASICs, SoCs, VLSI design and embedded software. Over the years, Moschip has become an important part of in India's semiconductor ecosystem. Due to the company's strong position in chip design, it was one of the early beneficiaries of the Design Linked Incentive (DLI) scheme of Indian government. Due to this and the booming demand for semiconductors in AI and high-performance computing, the company has shown strong growth over the last few years. Moschip Technologies Share Price – 1 Year Source: Equitymaster In July 2024, MosChip secured a ₹5,000 crore contract from C-DAC to design a high-performance computing (HPC) System on Chip (SoC) using 5 nm technology. The four-year engagement gave it a major leap and also includes long-term support and maintenance. In October 2024, where the company was inducted as an AI/ML design partner in the Renesas RZ partner ecosystem. This was a big development considering Renesas' strong position in the global semiconductor ecosystem. MosChip is currently focused on RISC-V architecture, HPC processor development, and custom IP design. While it's not into semiconductor manufacturing, its fabless design-first business model is scalable and asset-light. #2 Tata Electronics Tata Electronics is part of theTata Group. The company has expertise in manufacturing precision components. It's setting up a ₹27,000 crore OSAT facility in Jagiroad, Assam. Scheduled to become operational by mid-2025, this groundbreaking plant will generate approximately 27,000 jobs, with 15,000 direct positions and an additional 12,000 indirect roles. The company is also setting up India's first wafer fabrication (fab) unit in Dholera, Gujarat. This ambitious project will produce 50,000 wafers per month at an investment of ₹91,000 crore, and the first chips are expected by December 2026. The Tata sees semiconductors as a strategically important sector for long-term growth. Latest media reports suggest the company has sent around two hundred employees to Taiwan for hands-on training at the plant of the company's partner Powerchip Semiconductor. #3 Cyient Cyient is a technology company based in Hyderabad. It has over three decades of experience in engineering and software. The company is investing in chip design, digital engineering, and intelligent manufacturing via its new subsidiary, Cyient Semiconductors. This company is focused on end-to-end chip design, ASIC development, and embedded systems. Cyient's competitive advantage is in its expertise across sectors like transportation, communication, energy, aerospace, and healthcare. Cyient Share Price – 1 Year Source: Equitymaster The company's DET (digital, engineering & technology) business line complements its semiconductor aspirations, with a portfolio that includes design, prototyping, and system-level integration. In FY25, the DET business clocked revenues of $68.8 crore, with $37 crore in large deal wins in the year. #4 Kaynes Technologies Incorporated in 2008, Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for clients in automotive, industrial, aerospace and defence, space, nuclear, medical, railways, internet of things, IT and others. It specialises in delivering 'build to print' and printed circuit board assemblies (PCBA) to original equipment manufacturers (OEM). The company also offers a wide range of solutions, including smart metering technology, smart street lighting, and IoT solutions for smart consumer appliances and devices for original design manufacturers (ODM). Kaynes Technology Share Price – 1 Year Source: Equitymaster The company's subsidiary Kaynes Semicon is setting up an OSAT facility which will have the capacity to produce 6 million chips per day after fully scaling up. The chips will cater to a wide range of industries, including industrial, automotive,electric vehicles (EV), consumer durables, and telecom. It has already formed partnerships with key players in the semiconductor ecosystem, which will help accelerate its growth. #5 CG Power & Industrial Solutions CG Power and Industrial Solutionshas been part of theMurugappa Groupsince 2020. It's engaged in the design, manufacturing and marketing of products related to power generation, transmission, and distribution & rail transportation. The company has two business divisions namely industrial systems, and power systems. The former caters to motors and drives, and railways, whereas the latter caters to power industry and is used in transformers switchgears and allied products. CG Power and Industrial Solutions has recently entered into a joint venture with Renesas Electronics and Stars Microelectronics to establish an OSAT facility in India. The facility is expected to manufacture 15 million chips daily and will focus on packaging, assembling, and testing semiconductor chips for various applications, including consumer electronics, automotive, industrial, and power sectors. CG Power Share Price – 1 Year Source: Equitymaster To know more about the company, check outCG Power's financial factsheetand itslatest quarterly results. Conclusion Under Semicon 2.0, the government is doubling down on its semiconductor ambitions, aiming for a 5% share of global chip production by 2030. Back in 2021, India announced a $10 billion incentive package to build its semiconductor ecosystem from the ground up. That money is now finally moving. Funds are being disbursed, and five projects-across chip fabrication, OSAT, and ATMP have already been approved under the scheme. The idea is to pull in global chip players while also creating space for homegrown champions. If things go to plan, this policy shift could open up real opportunities for investors looking atIndia's semiconductor value chain. As policy incentives expand and chip demand rises, the companies mentioned here should benefit. However, this is a highly complex industry filled with numerous risks. The sector is also cyclical as well as capital intensive. Thus, investors considering investments in semiconductor stocks will have to keep their enthusiasm in check and be extremely careful. Investors should closely track company performance, policy developments, corporate governance, along with global semiconductor trends before making any investment decisions. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated
Time of India
03-07-2025
- Business
- Time of India
Shrinking profit margins unwind popular ‘Make in India' trade in electronics
A sector that underpinned the once-popular ' Make in India ' trade is faltering as shrinking margins and slowing growth shake investor confidence. Following triple-digit share gains in recent years, electronics manufacturers — who make everything from Samsung Electronics Co. phones to air conditioning units — are facing a sharp reversal as investor enthusiasm cools. Among them, shares of Dixon Technologies India Ltd. and Kaynes Technology India Ltd. have tumbled more than 15% this year, underperforming the broader market rally. The unwind marks a turning point of a trade once central to the bullish case about India's manufacturing ascent. As companies boost spending, some investors are questioning whether market demand is keeping pace with the flood of investments. Rich valuations, increased competition and an expiry of government stimulus programs are adding to the unease. 'There is plenty of topline growth available for the leaders in this space – but when we incorporate high valuations and sensible margin scenarios into the growth outlooks, we believe capital can be more effectively deployed elsewhere,' said Vikas Pershad, a fund manager at M&G Investments. The underperformance follows years of stellar gains, when shares of these companies surged thanks to hopes India could emerge as a manufacturing powerhouse to rival China. But that market frenzy also pushed valuations higher, with most stocks in the segment trading at above 50 times its one-year forward earnings, more than twice that of NSE Nifty 50 Index. Dixon's Taiwan peers Hon Hai Precision Industry Co. and Wistron Corp. trade at about 11 to 12 times forward earnings. In the last two calendar years, Kaynes shares have surged 888% while PG Electroplast Ltd. soared 771%. Amber Enterprises India Ltd. has jumped 291%. Wall Street firms are turning less bullish on the outlook. Jefferies analysts said this week that the risk-reward for Dixon appears stretched and reiterated its underperform rating, while Morgan Stanley downgraded the stock to a sell equivalent. Meanwhile, the ratio of sell rating to total recommendations for Kaynes is at the highest since its listing in 2022, according to data compiled by Bloomberg. Sentiment has shifted partly due to the looming expiry of the government's production-linked incentive scheme, a key part of Prime Minister Narendra Modi 's manufacturing push. While the government has stayed mum on any extensions, media reports say Modi will let it lapse due to disappointing results. Dixon will likely be impacted when the incentives for mobile phone manufacturers expire in the fiscal year ending March 2026. Some firms are expanding upstream by acquiring suppliers, raising investor concerns about long-term cost increases. Kaynes is investing 34 billion rupees ($397 million) for a semiconductor assembly facility , while Amber has committed up to 24 billion rupees over five years for its electronics division. Beyond electronics manufacturing , other segments of the market once central to manufacturing renaissance hopes have also slid this year. Those include shares of some renewable firms like solar panel and battery makers, as well as some auto component makers. In the latest blow, Foxconn Technology Group has asked hundreds of Chinese staff at iPhone plants in southern India to fly home. While India is still expected to significantly increase its manufacturing base, uncertain market growth has prompted many stock investors to step back for now. 'Much of the growth so far was driven by government incentives, and long-term success will depend on quality of the capex and whether firms can develop a lasting edge over its competitors,' said Vipraw Srivastava, an analyst at PhillipCapital India.
