Andhra Clears ₹856-Cr Incentive for India's Largest Printed Circuit Board Plant

The Andhra Pradesh government has approved a ₹856 crore incentive package for India's largest printed circuit board plant being set up by electronics manufacturing company (EMS) Syrma SGS.

The package was cleared by the state cabinet headed by Chief Minister N Chandrababu Naidu on Thursday, officials said.

Syrma SGS will set up India's largest printed circuit board (PCB) plant at an investment of ₹1,595 crore. The project is being done in partnership with Korea's Shinhyup Electronics.

Syrma SGS had submitted a proposal to set up a PCB manufacturing facility in partnership with Shinhyup Electronics Ltd on a 51:49 equity shareholding basis.

For the project, the state government will provide 12.56 acres of land at 75% subsidised cost. The project will be located at the Naidupeta industrial area, which is in close proximity to Chennai, Tamil Nadu.

The project will be commissioned by October 2026 and is expected to add ₹6,200 crore to the topline of Syrma SGS in FY2027.

The project will have three components -- single-layer and multi-layer PCB manufacturing, HDI/flex PCB manufacturing, copper clad laminate (CCL) manufacturing and electronics manufacturing services.

With a turnover of ₹3,836 crore in FY25, Syrma SGS has a market cap of close to USD 2 billion. It has 14 manufacturing facilities and at least 9,000 employees.

Printed Circuit Boards (PCBs) are essential components in most electronic devices, serving as the base for mounting and interconnecting electronic parts.

Copper Clad Laminate (CCL) acts as the core material used in the manufacturing of PCBs. The PCBs produced by the unit will be utilised in important emerging sectors, such as smart metering, healthcare and medical devices, automotive, and electric mobility.

Market intelligence firm UnivDatos reports that the rapid electrification of vehicles and the integration of advanced driver-assistance systems (ADAS) have driven up the demand for sophisticated PCBs in the Indian automotive sector. Features like smart dashboards, battery management systems, infotainment, and electric vehicles (EVs) are increasingly standard, creating a growing need for high-quality and durable PCBs.