Kaynes to Invest INR 4,995 Cr in Electronics Plant in Tamil Nadu

Kaynes Technology will be creating a Rs.4,995 crore facility for high-end electronic components in Thoothukudi, Tamil Nadu, a key step towards India's efforts to move towards indigenous electronics production. The facility will produce 74-layer printed circuit boards (PCBs), HDI PCBs, flexible PCBs, high-performance laminates, wire harnesses, and camera modules. It will create about 4,700 direct and indirect employment opportunities in the region.

The new unit is a milestone in Tamil Nadu's industrial plan, with the state aiming to transition away from assembly-line manufacturing to high-value component manufacturing. The state official cited that this factory will serve as a nucleus for an emerging electronics cluster, much like the established clusters in Sriperumbudur and Hosur.

"Tamil Nadu is huge for this and will give a boost to the state's dream of becoming an electronics manufacturing hub," an industry source with knowledge about the project said. According to experts, the Kaynes investment can trigger a changeover in the industrial landscape of Thoothukudi, particularly when the neighboring VinFast electric vehicle manufacturing plant is also added into the mix.

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Prabhu Ram, Vice President at CyberMedia Research, commented, “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.”

This is in line with the Centre's Rs.22,900 crore scheme for Electronic Components Manufacturing to enhance domestic strength in key areas like PCBs, semiconductors, and display modules. A government official further said, "The belief that India is only restricted to final assembly is being challenged, Tamil Nadu is leading in core component manufacturing."