Page 63 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

The EMS industry in India, with nearly three decades of experience, is much younger. It

Circuits and Nokia. This triggered a series of large/medium-scale investments in the Indian
EMS sector. By 2015, global EMS giants had started showing interest in India. The Indian
EMS industry has since then crossing milestones. Now with most of the global Mobile
Phone manufacturers and their supply chain partners investing in manufacturing, the
Indian EMS industry is poised to unlock its true potential in coming years.

Global EMS Industry size Indian EMS Industry size
1,350 200
1,225
CAGR: 4.1%
1,200 160
CAGR: 36%
1,050 1,002
USD bn CAGR: 4.5% USD bn 120
900 80
804 CAGR: 30%
750 40

600 0
FY2020 FY2025E FY2030E FY2021 FY2026E FY2030E

Source: Frost & Sullivan, Edelweiss Research Source: Frost & Sullivan, Edelweiss Research
The total top line of EMS players in India stands at ~USD14bn, a fraction of the global
EMS market, which is in excess of USD800bn. This implies less than a third of local value
addition/manufacturing vis-à-vis the total addressable market (TAM).

Creation of local supply-chain for EMS; PLI a
fundamental trigger like autos in 90s Domestic players
(Dixon, Amber, etc.) as
Domestic players (Dixon, Amber, etc.) as well as global giants (Foxconn, Pegatron, etc.) well as global giants
are planning long-term supply-chain partnerships, targeting both domestic and global (Foxconn, Pegatron,
markets. In our view, much like the global EMS markets, the domestic EMS industry will etc.) are planning long-
term supply-chain
as brands go for outsourcing for value reasons. In our view, many domestic players will partnerships, targeting
enter the global supply-chain, generating competitive edge beyond FY23–25E as volumes both domestic and
pick up.
global markets

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