Syrma SGS poised for continued growth and innovation in EMS: Satendra Singh

Incorporated in 2004, Syrma SGS Technology Ltd is a Chennai-based engineering and design company engaged in electronics manufacturing services (EMS). Its one-stop-solution EMS includes product design, quick prototyping, PCB assembly, box build, repair and rework, and automatic tester development services. 

Satendra Singh, CEO, Syrma SGS Technology Ltd, tells us more. Excerpts from an interview: 

DQ: How is the merger between Syrma and SGS Tekniks coming along? Please elaborate.

Satendra Singh: In 2021, Syrma and SGS Tekniks operationally merged (though technically, it was an acquisition), creating a powerhouse in the EMS industry. Both companies, previously independent players with a robust presence in their respective domains – Syrma in exports and South India, and SGS Tekniks in the domestic market with a European foothold – brought to the table a combined revenue exceeding ₹800 crore. 

Interestingly, there was no customer overlap along with complementing industry verticals, presenting a unique opportunity to leverage each other's strengths and expand our market reach. Syrma SGS is now a single, unified entity with standardized management processes across all our facilities. 

This strategic move has not only optimized operational scale, but also empowered us to establish a broader distribution network and a stronger footprint. This merger has positioned Syrma SGS as a significant player within the EMS ecosystem, poised for continued growth and innovation.

DQ: How many manufacturing facilities Syrma SGS Technologies has? Please elaborate on specific segments being addressed through them?

Satendra Singh: We currently boast a robust network of 18 state-of-the-art facilities strategically located across India, empowering us to serve a diverse clientele. Building on this strong foundation, we are establishing two new facilities: one in Ranjangaon, Pune, slated to be operational by Q3FY25, and the Shoolagiri facility in Hosur, which is on track for completion by FY25-26. 

Our Chennai facility excels in RFID and IT product manufacturing, while our two Manesar facilities are dedicated to the automotive and telecom sectors, respectively. These facilities serve not only large enterprises but also provide essential services to a multitude of industrial customers.

DQ: What are you now doing in medical electronics?

Satendra Singh: Medical electronics is a focal segment for us, where we collaborate with numerous global clients across vital areas such as oral healthcare and in-vitro diagnostics. 

Our commitment to this high-growth market was highlighted in FY24 by the acquisition of Johari Digital Healthcare. This acquisition brings a wealth of expertise in diverse healthcare domains, encompassing therapeutics, beauty, respiratory care, and patient health monitoring. 

Johari's established FDA approvals and ODM services further bolster our capabilities in product design and development, enabling us to deliver a comprehensive suite of innovative solutions in the medical electronics space.

DQ: How has been the work going on in defence electronics? 

Satendra Singh: With the Indian defence market growing and evolving, Syrma SGS has been actively expanding its footprint in defence electronics. We offer defence and aerospace sales, installation, commissioning, and other technical support services for OEMs. 

Additionally, we provide manufacturing services for PCBA, box build, and cable/harness fabrication. Our collaborations extend to public sector undertakings and various branches of the armed forces, including the Army, Navy, and Air Force, positioning us as a trusted partner in advancing defence technology and capabilities.

DQ: What are the new advancements being made in IoT segment?

Satendra Singh: IoT is a significant focus area for Syrma SGS, reflecting the exponential rise in machine-to-machine communication and traffic. We are making substantial advancements in the IoT segment, particularly in smart meters, and home and building automation. 

Furthermore, we have started manufacturing communication modules and Wi-Fi models. Our efforts have been recognized by the Ministry of Electronics and Information Technology (MeitY) for our contributions to manufacturing IoT products in India, as highlighted at the 'Azadi Ka Amrit Mahotsav' event.

DQ: Elaborate what you have been doing in the PLI schemes for telecom and white goods.

Satendra Singh: Syrma SGS has established a strong track record in the telecom sector, collaborating with leading Indian operators for over three years. We are a trusted partner, delivering a comprehensive suite of telecom products, including ONT and GPON devices, Wi-Fi routers, and chip-on-board devices. In addition, we are expanding our telecom portfolio, and are currently in discussions with several promising new clients, aiming to onboard them soon.

DQ: What has been your contribution to the electronics system design and manufacturing (ESDM) roadmap?

Satendra Singh: The electronics system design and manufacturing (ESDM) sector is growing exponentially in India, becoming a key driver of our vibrant and modern economy and gaining widespread recognition. Syrma SGS has emerged as a major player in this field, focusing on technology-based solutions and the original design manufacturing (ODM) business. 

Our business model starts with product concept design and encompasses every segment of the industry chain. We emphasize continuous improvement at every stage to meet client requirements and contribute to industry development.

To further strengthen this approach, we have established a separate vertical dedicated to design and development. Our partnership with the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives has promoted our manufacturing unit and expansion, enhancing our capacity and self-reliance in the ESDM industry.

DQ: Elaborate what you have been doing in the IT hardware PLI scheme?

Satendra Singh: Syrma SGS has a long-standing legacy as a leading manufacturer of critical components like motherboards, memory modules, and SSDs. Last year, we benefited from the government's PLI Scheme for IT hardware, which has been instrumental in broadening and deepening our manufacturing ecosystem, empowering us to establish strong partnerships with both domestic and global OEMs. 

We are capitalizing on the dynamic customer landscape, characterized by an ever-evolving portfolio of needs, which enables us to retain our valued existing clients and win new partnerships across diverse industries.

DQ: What are you doing to build scale quickly, and build skills at scale not previously imagined? 

Satendra Singh: To achieve rapid scalability and foster a culture of high-level skill development, we are implementing a multi-pronged strategic approach. Firstly, we are expanding from small facilities to large greenfield facilities, such as those in Pune and Hosur. These facilities are set to offer significant growth and expansion possibilities over the next 5-7 years, providing a platform for future infrastructure expansion. 

Secondly, we are making significant investments in talent acquisition across various functions. By building a team of highly skilled individuals from diverse backgrounds, we are rapidly scaling up our operations.

In addition to these core initiatives, we are actively exploring multiple opportunities with EMS as our foundation. This includes potential vertical integrations in areas such as plastic injection molding, sheet metal, and packaging. We are meticulously evaluating all such opportunities and will make decisive moves at the most opportune moment.

DQ: What steps have you taken to develop the ecosystem further, especially, components, plastics, metals, etc.?

Satendra Singh: At Syrma SGS, we aim to enhance the ecosystem of components, plastics, and metals. To achieve this, we have developed strategies to enhance plastic and sheet metal capabilities through collaboration with capable partners in line with business requirements. 

Leveraging our expertise in wire harnesses, we are ready to capitalize on emerging opportunities through targeted investments. Sustainability lies at the heart of Syrma SGS's corporate strategy. 

Our comprehensive program is dedicated to reducing greenhouse gas emissions, increasing renewable energy utilization, and optimizing reusable packaging solutions. We are actively collaborating with our clients, particularly across Europe, to achieve our respective sustainability objectives. By aligning with their goals, Syrma SGS plays a significant role in meeting environmental objectives and fulfilling our responsibilities.

DQ: Elaborate on any new partnerships that you have made in 2024, and earlier.

Satendra Singh: In 2024, we haven’t announced any new partnerships. As mentioned earlier, in FY24, we acquired Johari Digital Healthcare, a medical ODM based out of Jodhpur, which has a significant customer base in the US. 

In 2022, we acquired a firm named Perfect ID, a RFID tag manufacturer. These initiatives represent some of the steps we've taken for inorganic growth over the years, and we continue to evaluate partnerships with companies globally to expand capabilities. We pursue opportunities selectively, ensuring alignment with our long-term strategic objectives and enhancing value for our stakeholders.

DQ: How has been the exports from Syrma and the focus on product quality?

Satendra Singh: Syrma SGS Technologies is a leading player in the electronic design and manufacturing services sector, serving global OEMs. With operations spanning multiple facilities across India, Syrma SGS specializes in enhancing product intelligence through innovative design, construction, and assembly solutions. 

Our core competencies include the design and manufacture of printed circuit board assemblies (PCBAs), RFID tags, and magnetic products tailored for diverse applications. Spanning over 20 countries, including North America and Europe, Syrma SGS caters to a diverse clientele of over 280 esteemed customers. 

Our export capabilities range from small to high-volume productions, underpinned by a deep understanding of global customer needs in terms of cost, quality, and delivery efficiency. We are committed to excellence, evident through our enduring partnerships of 15-20 years. This longevity underscores our ability to consistently meet and exceed the highest industry standards, positioning Syrma SGS as a trusted partner in driving technological innovation and operational excellence worldwide.