India’s Syrma wins as Japanese firms look beyond China

Syrma SGS Technology gained 3% after partnering with Japan's Kaga Electronics to set up a new Electronics Manufacturing Services (EMS) facility in India. The new facility will focus primarily on serving Japanese clients looking to manufacture in India.

The deets: Syrma and Kaga will form a joint venture, with Syrma owning 60% and Kaga owning 40%.

In simple terms, an EMS facility manufactures electronic products for other brands, handling everything from sourcing components to assembly and testing. 

What each company brings: Syrma brings local manufacturing expertise, existing factories, supply chain relationships, regulatory know-how and experience working with global customers across consumer electronics, automotive, healthcare and industrial products.

Kaga, meanwhile, brings access to Japanese customers, technology expertise, global sourcing capabilities and relationships with electronics brands that may want to expand manufacturing into India.

Why this matters: Global companies have been actively diversifying supply chains beyond China over the past few years.

For Kaga Electronics, partnering with an established Indian player provides a faster and lower-risk route into India's manufacturing ecosystem.

Deeper analysis: Electronics manufacturing has become one of India's fastest-growing industries. Apple suppliers have expanded aggressively in the country, while companies across smartphones, industrial equipment, automotive electronics and consumer devices are increasing local production.

India's electronics production has already crossed $130 billion annually, compared to roughly $30 billion a decade ago. The government is targeting $500 billion in electronics manufacturing by 2030.

For Syrma, this deal is about much more than one factory. It positions the company as a gateway for Japanese firms entering India.