Kaynes Plans INR 5K Cr Electronic Parts Facility In TN

Electronics manufacturer Kaynes Technology India Ltd’s subsidiary Kaynes Circuits India is reportedly planning to set up an electronics manufacturing facility in Tamil Nadu’s Thoothukudi, with an investment of INR 4,995 Cr ($572 Mn).

The facility would engage in the production of 74-layer PCB, flexible PCB, HDI PCB, high-performance laminates, camera module assembly and wire harness assembly, ET reported, citing sources familiar with the matter.

“This is big for Tamil Nadu and will provide fillip to the state’s electronics manufacturing ambitions,” a source was quoted as saying.

Inc42 has reached out to Kaynes for comments on the development. The story will be updated based on the response.

“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,” the person added.

Reports confirm that this investment, if carried out, would mark the first large-scale investment in PCB manufacturing in the state, aligning with the state government to set up a new electronics manufacturing cluster in Thoothukudi.

The development comes more than a month after the electronics manufacturer incorporated a wholly-owned subsidiary Kaynes Space Technology, to design, develop and manufacture satellites of all classes and mission-specific payloads.

Prior to that, yet another subsidiary Kaynes Semicon was eyeing to deliver India’s first packaged semiconductor chip this year, for which it received the approval from the union cabinet to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr, in September last year.

On that path, Kaynes Semicon along with L&T Semiconductor Technologies (LTSTC) were set to acquire the power modules business of Japan’s Fujitsu General Electronics for INR 118.32 Cr (around $13.8 Mn) in June.

The parent company reportedly bought land in Gujarat’s Sanand to build its outsourced semiconductor assembly and test (OSAT) unit, in August 2024.

Shares of Kaynes Tech closed 1.2% lower at INR 6,295.90 apiece on the BSE, compared to its previous close of INR 6,370.40 per share on Friday (August 1).

Manufacturers’ Stirring Interest In Tamil Nadu’s Land

Numerous manufacturing giants across sectors have been eyeing to capture a spot in Tamil Nadu’s fertile locations to set up their production units in the past few months.

Aside from Tamil Nadu’s recent establishment of a spacetech fund with a corpus of INR 10 Cr, the state government also launched “Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)” in May to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state.

Kaynes Circuit’s plan to set up its new unit also comes on the sidelines of Vietnamese electric vehicle (EV) manufacturer VinFast inaugurated its first manufacturing facility in India at Thoothukudi in Tamil Nadu, earlier today, based on a Reuters report.

Moreover, electronics manufacturer Dixon Technologies signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up a manufacturing facility near Chennai with a total investment of INR 1,000 Cr, in April.