India's electronics manufacturing services (EMS) sector is gaining momentum amid global supply chain realignment. Kaynes Electronics will invest INR3.52 billion to build a new high-tech facility in Bhopal, highlighting Central India's growing role in the country's push to attract electronics production beyond China.
According to the Economic Times, Electronics for You, and Projects Today, Kaynes Electronics, a subsidiary of Kaynes Technology India Ltd, will establish a high-tech electronics manufacturing facility in Bhopal with an investment of INR3.52 billion (US$40.95 million) under the Madhya Pradesh Semiconductor Policy 2025. The plant, located at Badwai IT Park, will span five acres and is expected to generate over 1,000 skilled jobs. Commercial production is scheduled to begin by mid-2026.
Advanced manufacturing capabilities planned
The facility will feature Surface Mount Technology (SMT) lines catering to sectors such as automotive, aerospace, defence, medical, industrial, IoT, and space technology. It marks Kaynes' first major investment in Central India, complementing its eight other facilities nationwide.
The project benefits from the Madhya Pradesh government's Semiconductor Policy 2025, which offers infrastructure support, financial incentives, and focused skill development to attract tech-driven industries. It is also backed by the state's science and technology department under the Cabinet Committee on Investment Promotion (CCIP).
Kaynes Electronics CEO Raghu Panicker credited the proactive support from the state government as a key factor in choosing Bhopal. State officials said the investment reflects growing industry confidence in Madhya Pradesh's strategy to emerge as a hub for semiconductor and electronics manufacturing.
Expansion beyond central India
The announcement came after a similar investment to set up a new manufacturing unit in Perumbavoor Industrial Park, developed by KINFRA, with an investment of INR5 billion. The facility is expected to create over 2,000 jobs.
India is gaining traction as a key destination for electronics manufacturing services (EMS) as companies diversify beyond China.
Backed by aggressive government support in fiscal 2024–2025, India is boosting its semiconductor and electronics sectors with INR11.11 trillion in capital spending under three major incentive schemes—PLI, SPECS, and EMC 2.0. A new INR229.2 billion scheme will launch in 2025 to support local component, subsystem, and equipment manufacturing.
Article edited by Jerry Chen
