Industrial Automation Magazine India

Syrma Technology signs merger agreement with SGS Tekniks

Published on : Thursday 12-11-2020

To strengthen its global and domestic presence in EMS Electronic Manufacturing Services.

Chennai/New Delhi, November 11, 2020: Syrma Technology and SGS Tekniks, leaders in electronic design and manufacturing services for global and domestic OEMs, have announced a definitive merger agreement. The cash cum stock merger will see the creation of Syrma SGS Technologies Pvt Ltd with a combined turnover of over Rs 1000 crore, with 55% revenues coming from exports primarily to USA and Europe. The deal was supported through a Private Equity investment by GEF.

Upon completion of this merger, Syrma SGS Technologies Pvt Ltd will have 8 manufacturing facilities in India across Gurgaon, Manesar, Bawal, Baddi, Bangalore, Chennai and Bargur, and 3 design centre centres in Chennai, Gurgaon and Stuttgart, Germany.

Consequently, this strategic merger is a perfect fit as there are no overlapping customers, industry verticals and geographies between the two entities. Further, with the established track record and strong expertise of the combined entity will serve marquee customers in Industrial, Water Purification, Medical and Automotive industries. Without expertise in IoT there is huge opportunity to add IoT to a wide range of products making them “smart”. 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.

Making Atmanirbar Bharat a reality: Recent Government Policy initiatives like Atmanirbar Bharat and Make in India have generated unprecedented interest in the electronic manufacturing sector in India. With Indian EMS market, growing at a CAGR of over 25%, there is an increase in opportunity to outsource manufacturing in consumer electronics, home appliance, mobile phones, etc. To take advantage of such emerging opportunities, the existing management of the two companies will continue to play key roles in driving the future growth of the company. Leveraging the opportunities this merger is poised to expand product and services offerings such as Design Services, Board and Box build capabilities that can serve new product and engineering change initiatives.

Mr Sandeep Tandon, MD – Syrma Technology Pvt Ltd, commented, “Application areas such as medical electronics and defence electronics are seeing a surge leading to growth in the overall electronics sector. With Government recently announcing incentive schemes like PLI, Specs, EMC 2.0, etc., for developing the ecosystem, there is a bigger need for technological advancement in the EMS sector. This merger brings in a combined strength in new product and new customer acquisition through Co-Creation, Product realisation and Lifecycle management. I’m excited about the future prospect of the combined entity and believe that the merger with SGS Tekniks can help us grow to our business by over 20 % y-o-y.”

“We are delighted to bringing together these two iconic companies through this merger and creating a strong platform for both domestic and international growth. We have the utmost respect for Syrma business and its employees, and greatly look forward to working together as we integrate the two companies,” said JS Gujral, Founder and Chairman of SGS Tekniks.