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According to Motilal Oswal Wealth Management Ltd., the electronics manufacturing sector in India is on the cusp of a transformative journey, projected to grow at a robust CAGR of 26% between CY23-30, reaching USD 500 billion.

India is emerging as a preferred global destination for electronics manufacturing due to increasing assembly activities and unprecedented demand in the EMS sector, particularly in mobile phones, automotive, and industrial segments.  Favourable government policies such as the PLI schemes and the Semicon India program, increasing domestic demand, and a robust push toward self-reliance is further propelling the opportunity.

Motilal Oswal Wealth Management has designed a basket  with 5 companies which would benefit from substantial growth opportunities in the EMS space which is likely to grow to Rs. 6.0t in FY27 from Rs.1.46t in FY22 and do well over short to medium term.

* CG Power and Industrial solutions: CG Power is engaged in the design, manufacturing, and marketing of products related to power generation, transmission, and distribution. It manufactures voltage motors, breakers, switchgears and power monitors.

* Dixon Technologies: Dixon is benefitting from strong volumes in existing mobile customers. We expect Dixon to continue to benefit from its market leading position across segments, addition of new segments, backward integration and ODM mix improvement.

* Kaynes Technology: KAYNES is a prominent end-to-end and IoT-enabled integrated electronics manufacturer driven by a healthy order book growth trajectory and a better margin profile. It is rapidly scaling up its smart meter business and is expected to clock USD1b revenue by FY28 and triple its revenue by FY29.

* Amber Enterprises: Amber experienced strong performance due to growth in the AC industry, new client additions, and a strategic focus on expanding the electronics segment. It is adding new customers in segments such as automotive, defense, medical, and telecom and is targeting to grow its electronics division at a fast pace.

* Syrma SGS: Syrma SGS engaged in EMS serves diverse end-use industries like automotive, healthcare, consumer products, Industrial, IT and Railways. It has recently received PLI approvals in med-tech (Cancer Care & Anesthetic Devices) starting FY26. OB stood at INR48b (+26% YoY), ensuring sustained growth visibility. Strategic investments in facilities like Pune and Hosur, along with unutilized IPO proceeds, aligns with FY25 revenue guidance of INR45b (+40-45% YoY)

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