Syrma to Merge with SGS Tekniks to Create Rs 1,200-cr Entity


Reading time ( words)

Syrma Technology and SGS Tekniks announced a merger agreement to further strengthen their design and manufacturing capabilities for global and domestic OEMs.

The cash cum stock merger will see the creation of Syrma SGS Technologies with a combined turnover of over Rs.1000 crores, with 55% revenues coming from exports primarily to the USA and Europe. The deal was supported through a private equity investment by GEF.

“The current revenue of Syrma is over Rs 550 crore, post the merger we’ll have a combined revenue of Rs 1000 crore,” said Sandeep Tandon, Managing Director, Syrma Technology. “We’re projecting growth between 25% to 30% year-on-year and by 2021 we aim to achieve Rs 1200 crore in revenue.”

Tandon said that with the Indian EMS market is growing at a CAGR of over 25%, there’s an increase in the opportunity to outsource manufacturing in consumer electronics, home appliances, mobile phones, and so on.

“Application areas such as medical electronics and defense electronics are seeing a surge leading to growth in the overall electronics sector. With the government recently announcing incentive schemes like PLI, Specs, and EMC 2.0, for developing the ecosystem, there’s a bigger need for technological advancement in the EMS sector,” Tandon said.

Further, there’s a huge opportunity to add IoT to a wide range of products.

“With the projected global growth of IoT products to well over US$5 Tn and the Indian IoT market keeping pace, the opportunities are quite exciting for the combined entity,” the company said in a statement.

Upon completion of this merger, Syrma SGS Technologies will have 8 manufacturing facilities in India across Gurgaon, Manesar, Bawal, Baddi, Bangalore, Chennai, Bargur, and three design centers in Chennai, Gurgaon, and Stuttgart (Germany).

Share

Print


Suggested Items

Meet Christine Davis, I-Connect007 Columnist

12/23/2020 | I-Connect007 Editorial Team
Meet Christine Davis, one of our newest columnists! Christine will share her expertise and lessons learned through her journey as one of the few women in the electronics industry to found and run her own company.

Lorain County Community College’s Successful MEMS Program

12/07/2020 | I-Connect007 Editorial Team
The I-Connect007 editorial team had the pleasure of an extended and detailed conversation with Johnny Vanderford and Courtney Tenhover from Lorain County Community College (LCCC). Vanderford and Tenhover are at the heart of the microelectromechanical systems (MEMS) program at LCCC that is emerging as a model for a successful technical higher-education program. This conversation was lively, and the enthusiasm at LCCC is infectious, as it should be; their results are impressive.

KYZEN’s Popular Cleaning Series Continues

11/25/2020 | I-Connect007 Editorial Team
Wondering what to look for in a PCB cleaning agent? In just 10 minutes, you will learn from Jack Reinke what impacts your waste stream as part of the latest installment of KYZEN’s Tech2Tech series. This special webinar is held live at two times: 7:18 a.m. and 5:33 p.m. PST December 3, 2020.



Copyright © 2021 I-Connect007. All rights reserved.