SFO Tech mulling Rs 2,270 crore electronic components plant in Tamil Nadu

SFO Technologies is looking to set up a plant with Rs 2,270 crore investment in Tamil Nadu’s Theni district for manufacturing printed circuit boards (PCBs) and other components for the electronics industry, a senior executive at the Kochi-based company said.

The electronics manufacturing services firm, the flagship company of the NeST Group, is expected to sign a memorandum of understanding on the project with the Tamil Nadu government at the TN Rising Conclave in Madurai on Sunday, said the executive, asking not to be named.

PCBs are used in nearly all modern consumer electronic devices and accessories, including phones, tablets, smartwatches, wireless chargers, and power supplies. At the proposed plant in Theni, the company is also considering manufacturing components like composites, connectors, relays and optical transceivers.


SFO Technologies is aiming to start production at the facility in the next two years and expand to full capacity utilisation in six years, provided it gets land for the facility. The company has expressed interest in a 60-acre plot and is waiting for the land deal to be finalised, he said.

"We have facilities in Kerala as well as in Karnataka," the executive said. "In Tamil Nadu, we had a very limited presence. We thought it was the right time to select an area in a different geography and have it as a contingency plan to diversify our manufacturing footprint. Theni was an ideal location because it is close to Kerala and that is convenient from a commute and administrative purpose perspective."

The proposal ties into the Tamil Nadu government's push to get investments outside the traditional industrial hubs like Chennai, Hosur and Coimbatore.

The executive said the company is considering Theni for the project also because of its wind energy potential. The plant could possibly meet its power demand through renewable sources of energy, he said.

The company’s plan is to start with PCBs in Theni, the executive said. “As part of our proposal, we have also requested for some land towards Krishnagiri, for a plant that will be intended for connectors," he said.