Riding the wave of India's burgeoning Electronics Manufacturing Services (EMS) market, ChrysCapital, a leading Indian private equity firm, is set to invest ₹1,100 crore in ILJIN Electronics. This significant investment underscores the immense growth potential within the Indian EMS sector and highlights the increasing confidence of investors in the country's electronics manufacturing capabilities.

ILJIN Electronics, a subsidiary of Amber Enterprises, is strategically positioned to capitalize on the expanding EMS market in India. Amber Enterprises was reportedly in talks with private equity investors for a stake sale in its subsidiary ILJIN Electronics and may also consider a public listing of the entity along with pre-IPO placements. The monetization strategy is being decided for the subsidiary as it expands its electronics components manufacturing facilities that will require significant investments. This fresh capital injection from ChrysCapital will further bolster ILJIN's expansion plans and enhance its ability to meet the rising demand for electronic manufacturing services.

Several factors contribute to the rapid growth of the EMS market in India. Government initiatives such as "Make in India" and the Production Linked Incentive (PLI) schemes have played a crucial role in attracting investments and promoting domestic manufacturing. These initiatives aim to create a conducive environment for electronics manufacturing, reduce import dependence, and boost exports. Moreover, the increasing adoption of electronic devices across various sectors, including consumer electronics, telecommunications, automotive, and industrial automation, is fueling the demand for EMS.

India is emerging as a top smartphone supplier to the US, and electronics manufacturing stands at ₹12 lakh crore, according to Ashwini Vaishnaw. To further boost electronics manufacturing, Amber Enterprises is planning to invest ₹4,200 crore in building printed circuit boards in Hosur, Tamil Nadu, and Jewar, Uttar Pradesh, under the electronics components manufacturing scheme. Unicorn startup Zetwerk is also set to invest ₹1,000 crore to expand its electronics manufacturing capacity. Additionally, Kaynes Technology is planning an investment of ₹5,000 crore to build a chip plant in Gujarat.

ChrysCapital's investment in ILJIN Electronics is not an isolated event but rather a part of a larger trend of increasing investments in the Indian electronics manufacturing sector. This trend signifies the growing recognition of India as a global manufacturing hub and the immense opportunities it offers for both domestic and international players. With continued government support, increasing domestic demand, and a favorable investment climate, India's EMS market is poised for exponential growth in the years to come.