Shares of Syrma SGS Technology Ltd rose 2.09% on Wednesday, October 29, following the company’s announcement that it has received approval for an incentive package under the Electronic Components Manufacturing Scheme (ECMS). The stock traded at Rs 819.00, up Rs 16.75 from its previous close of Rs 802.25 on the NSE.
Government Approval and Industry Context
The Indian government recently announced the first set of approvals under the ECMS, clearing seven projects worth Rs 5,532 crore in investment and an estimated Rs 44,406 crore in projected output.
Among the approved firms are Kaynes Circuits India (subsidiary of Kaynes Technology), SRF, Syrma Strategic Electronics (subsidiary of Syrma SGS Technology), and Ascent Circuits, with Tamil Nadu accounting for five out of seven projects. These projects are expected to create over 5,000 jobs in their initial phase.
The Ministry of Electronics and IT (MeitY) received 249 applications with total investment commitments exceeding Rs 1.15 lakh crore, nearly double the scheme’s original target of Rs 59,350 crore. The cumulative proposals represent a projected output value of Rs 10.34 lakh crore and employment potential of 1.41 lakh, significantly higher than initial estimates.
Syrma’s Investment and Project Details
Syrma SGS Technology confirmed that its subsidiary Syrma Strategic Electronics will invest Rs 765 crore over six years to set up multi-layer printed circuit board (PCB) manufacturing facilities under the ECMS. The incentive package will help the company strengthen its presence in high-value electronics manufacturing, particularly in consumer electronics, automotive, aerospace, and defence segments.
Union Minister for Electronics and IT Ashwini Vaishnaw stated that the approved components, including multi-layer PCBs, copper laminates, camera modules, and polypropylene film, are foundational to the electronics industry. He added that with these new facilities, India will meet 20% of its domestic demand for high-density PCBs, 15% for camera modules, and 100% for copper laminates.
Stock Performance and Market Metrics
At 9:41 AM on Wednesday, Syrma SGS Technology shares were trading at Rs 819.00, up 2.09%, with a day range of Rs 801.20 to Rs 818.00. The company’s market capitalization stood at Rs 15,664 crore, with a P/E ratio of 72.54 and a dividend yield of 0.18%.
Over the past year, the stock has traded between Rs 370.00 and Rs 875.00, reflecting strong investor confidence driven by expansion in India’s electronic manufacturing ecosystem.
Conclusion
The approval under the Electronic Components Manufacturing Scheme marks a significant milestone for Syrma SGS Technology, reinforcing its strategic role in India’s push for self-reliant electronics production. With a cumulative investment of Rs 765 crore, the company is expected to scale up PCB manufacturing capacity and contribute to the growing domestic and global demand for high-end electronic components.
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