In an interaction with Electronics Bazaar, Sanjiv Narayan, MD, SGS Tekniks Manufacturing Pvt Ltd opens up regarding his recent investments in machinery and also highlights how the PCBA assembly market in India is gradually growing.
Talking about his manufacturing units, he said, “In our unit we have got 6 lines at present. But we have already got provision for 3 more lines in our Infocity, Gurgaon plant and provisions for 2 lines for our Bangalore plant. We are ready with the complete infrastructure. We just now need to bring in the machineries and start running the lines”.
When asked about the investment and the tentative time for opening the new lines, he said, “Keeping in mind the form commitment that we have made, we will open the next 3 lines by 2018-2019. Hopefully one line we will open by this year end. We are investing around 20 billion dollars for this project”. “As of for now automotive and lighting are the two areas which is growing very well. We are entering the railway and defence sector by the year 2018-19”, he further informed.
Talking about the Indian PCBA assembly market in India, Narayan commented, “The biggest problem is India is not looked at as a market for manufacturing. It is a market where products can be pushed in. If we want to do true manufacturing, PCBAs must be assembled here in India”.
“PCBA assembly process has started already in India for sure. We have been growing at 25% YoY for the last 5 years. If there is a push and new segments get added, then this 25% could very well be 250% but for that we need to be very sure that there is going to a very steady policy. Otherwise for anyone to take a 10 times risk will be a bad investment”, he stated further.