Kaynes looks to open Rs 4,995 crore components making unit in Tamil Nadu

Kaynes Circuits India is poised to invest Rs 4,995 crore for setting up an advanced electronic component manufacturing facility in Thoothukudi, Tamil Nadu, said people aware of the developments. The plant would produce 74-layer PCB, HDI PCB, flexible PCB, high-performance laminates, camera module assembly and wire harness assembly, the people said.

This would mark the first large scale investment in PCB manufacturing in Tamil Nadu. It underscores plans by the state government to set up a new electronics manufacturing cluster in Thoothukudi—far from the established hubs of Sriperumbudur and Hosur.

"This is big for Tamil Nadu and will provide fillip to the state's electronics manufacturing ambitions," one of the persons said. "Like Tamil Nadu brought (Vietnamese electric carmaker) VinFast for the auto sector to Thoothukudi, Kaynes' new unit is going to be an anchor investment that will help with the establishment of a new electronics manufacturing cluster in the deep South."

This person added that the new facility would also enable Tamil Nadu to move up the electronics manufacturing value chain. "The argument that India is only focusing on assembly is being debunked because this investment shows that Tamil Nadu is moving beyond just assembly to high-end component manufacturing," he said, adding that the new unit is likely to create about 4,700 jobs in Thoothukudi and neighbouring districts.

Parent Kaynes Technology India Ltd did not immediately respond to queries emailed on Sunday.

"The proposed Kaynes facility, near the upcoming VinFast EV manufacturing plant, bolsters Thoothukudi’s potential to emerge as a complete end-to-end automotive and electronics hub—seamlessly integrating advanced electronics manufacturing with electric vehicle (EV) production," said Prabhu Ram, vice president, industry research group at CyberMedia Research.

He said with the fresh investments, Thoothukudi could house an integrated ecosystem that mirrors Tamil Nadu’s other successful industrial clusters, fostering synergies across EV components, batteries, and power electronics.

Companies are also looking to capitalise on the recently-launched electronics component manufacturing scheme. ET reported on July 25 citing officials that printed circuit boards (PCBs) have found key interest from applicants.

The Rs 22,919-crore scheme aims to establish a strong domestic manufacturing ecosystem for a range of components which are fundamental building blocks in nearly all modern electronic devices. These include bare components such as multilayer PCBs and Li-ion cells for digital applications, passive components like resistors, capacitors, and inductors, as well as display and camera module sub-assemblies.

"The scheme has seen strong interest from the PCB industry since this is the first time we have got some mileage. It addresses not only multi-layer, but also high-density interconnect boards. But given what is going on right now (globally), it is very difficult to hit the targets. The government has promised all support," KS Babu, secretary, Indian Printed Circuit Association (IPCA) said at the time.