ESDM : Focus on PCBA

India's ESDM Sector-PCBA

India’s Electronics System Design & Manufacturing (ESDM) sector spans design, components, PCBs, assemblies and finished electronic products. Electronics Manufacturing Services (EMS) providers contract with OEMs to assemble PCBAs and, in some cases, integrate them into finished products through box-build services. The report focuses on PCBA as a central manufacturing stage and also examines the domestic bare PCB industry.

PCBA and the Electronics Value Chain

A PCB is the unpopulated board that provides the electrical framework; a PCBA is the board after components are mounted and soldered. Modern assembly commonly combines automated Surface Mount Technology (SMT) with Through-Hole Technology (THT), which is used for components requiring stronger mechanical bonds. The report describes India’s assembly ecosystem as growing across segments, while scaled design players and component manufacturing remain less developed.

ESDM Sector-PCBA Growth Drivers

• Demand across electronics end markets: The report projects the Indian ESDM market to reach $147.5bn in CY29 from $43.9bn in CY24. Mobile phones remain the largest segment, while IT is projected to expand from 5.6% to 13.7% of the market mix.
• Domestic bare PCB supply gap: India’s FY24 bare PCB demand is estimated at approximately USD 3.75 billion. The report estimates domestic manufacturing at about USD 0.54 billion and imports at approximately $3.38 Billion.
• Bare PCB market growth: The report projects Indian PCB demand to reach nearly USD 7.9 billion by CY27, with bare PCBs accounting for over 90% of requirements. The bare PCB market is projected to reach roughly USD 7.3 billion by CY27.
• Capacity investment: The report lists PCB and laminate projects from Syrma, Kaynes and Amber. These include investments of Rs. 1076 cr for Syrma PCB manufacturing, Rs. 1400 cr for Kaynes PCB capacity, and Rs. 991 cr for Amber’s Ascent Circuits multilayer PCB project.
• Policy support: Central and state schemes include incentives for PCB and PCBA manufacturing. The report notes that the schemes listed are not accepting applications as of the report date, except ECMS applications for segment D.
• Move up the value chain: The report describes a shift in focus from PCB assembly towards bare PCB manufacturing, including multilayer and HDI products.

PCB Manufacturing and Copper

The report compares two-layer and four-layer PCB cost structures and notes that copper is a major contributor to FR4 and overall PCB costs. It cites a 2020 price analysis in which PCB costs rose by 31% while copper prices rose almost 116% over the same period. Higher-layer boards serve more complex applications, including smartphones, computers, 5G infrastructure, EVs, medical devices and IoT.

Copper Supply and Cost Pressures

• Supply and demand: Global copper mine production reached 22.9 million tones in 2024; refined copper production reached 27.5 million tones. Refined copper demand was nearly 27 million tones, with China accounting for almost 60% of global consumption.
• Constraints on new supply: The report cites a 40% decline in global average copper ore grades since 1991, limited recent deposit discoveries and a 7-10 years minimum period for new mines to move from discovery to production.

Listed Companies and Capacity Expansion

The listed-company comparison covers revenue, EBITDA, EBITDA margin, PAT and PAT margin for FY23-FY25, alongside market capitalisation and PE. For FY25, the table shows Kaynes Technology revenue of 2,721.8 and EBITDA of 410.7, with a 15.1% EBITDA margin; Syrma SGS Technology revenue of 3,786.7 and EBITDA of 370.6, with a 9.8% EBITDA margin; and Dixon Technologies revenue of 38,860.1 and EBITDA of 1,117.1, with a 2.9% EBITDA margin.

Key Risks

• Copper price and availability: Copper prices rose from $3.5 per pound in 2021 to $4.9 per pound in 2025. The report also cites lower ore grades, mine development timelines and project delays as supply constraints.
• Import duties and input costs: The 30% anti-dumping duty on bare PCBs imported from China and Hong Kong has raised imported PCB prices and also increased production costs for some domestic electronics manufacturers, particularly in IT hardware.
• Capacity execution: The report lists multiple planned PCB, HDI, multilayer and laminate projects. Their contribution depends on the projects being installed and producing as planned; the report does not provide a schedule for all listed projects.
• Policy status: The report notes that the listed schemes are not accepting applications as of the report date, with ECMS accepting applications only for segment D.

ESDM Sector-PCBA Outlook

The report’s central sector theme is the potential to expand local bare PCB manufacturing as Indian electronics demand grows. Its market projections and announced capacity investments point to that opportunity, while copper supply and cost pressures, import-related input costs and the execution of new projects remain material considerations. No sector recommendation, target price or upside is provided.

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