The merger of Syrma Tech and SGS Tekniks will lead to creation of a Rs 1200 crore entity
Syrma Technology has announced that it is merging with SGS Tekniks in a cash and stock deal. The former is a electronics design and manufacturing provider while the latter is also in the same domain.
“The merger with SGS Tekniks can help us grow our business by over 20 per cent year on year,” Sandeep Tandon, MD – Syrma Technology, was quoted saying by the Times of India.
JS Gujral, founder director, SGS Tekniks, also welcomed the move and noted that the entire SGS Tekniks team has utmost respect for Syrma Tech and it is looking forward to work with the company.
Revenue from export
Once created formally, Syrma SGS Technology PvT Ltd, will be looking at a possible combined turnover of over Rs 1,000 crore. These figures include tentaive 55 per cent revenue form exports majorily coming from USA and Europe. It is also to be noted here that Syrma, once the merger is complete, will have eight manufacturing plants in India. These are located in Bawal, Baddi, Bangalore, Bargur, Chennai, Gurugram and Manesar. Similary the company will also have access to three design centres, one of which is located in Germany.
Syrma’s current portfolio of products includes IoT devices for automotive, computing, telecom, industrial, power and medical verticals. It is also in the manufacturing of power and RFID technology electronics.
The news of the two has broken out just before the government of India announced extension of PLI scheme to 10 new sectors. Among the 10 sectors identified, electronics, telecom and automotive might be of special interest to both the companies.
As a matter of fact the government has earmarked hightest amount for the automotive sector followed by the battery sector. Telecom and electronics have been marked as important sectors as well.