Kaynes Technology India Ltd. has received a strong early indication of demand for its upcoming printed circuit board (PCB) manufacturing business, with a major global customer seeking the company’s entire planned production capacity.
According to the company, customer trials are already being conducted at its manufacturing facility. The unnamed global player has also approved Kaynes as a vendor and issued a vendor code, marking an important step ahead of the facility’s planned commercial production launch next quarter.
The development gives Kaynes an early customer validation for its PCB venture even before the plant officially begins commercial operations.
Global Customer Conducting PCB Trials
During Kaynes Technology’s first-quarter earnings call, Executive Vice Chairman Ramesh Kunhikannan said a large international player was seeking the company’s full PCB capacity.
He said trials were already taking place at the facility and that the customer had completed its vendor approval process.
The company has not revealed the identity of the customer, the expected order volume or the potential financial value of the business.
The vendor code is nevertheless significant because it suggests that discussions have progressed beyond an initial enquiry. However, Kaynes has not confirmed whether the ongoing trials will eventually translate into a firm commercial order or when the customer could begin sourcing PCBs from the facility.
PCB Demand Strengthens Amid Global Supply Constraints
Kaynes Technology said interest in domestic PCB manufacturing has increased as global supply chains face longer lead times.
Management said PCB manufacturers are increasingly seeking advance payments, while customers may have to wait six to eight months for order bookings.
The company believes the current supply shortage could create a significant opportunity for Indian PCB manufacturers, particularly as businesses look to strengthen and diversify their electronics supply chains.
Management compared the situation with the semiconductor shortage experienced in previous years, suggesting that PCB availability could become another major bottleneck for electronics manufacturers.
Kaynes PCB Production Set To Begin Next Quarter
Kaynes is developing its PCB manufacturing business as part of its broader strategy to move further into high-value electronics manufacturing and backward integration.
Its investor presentation identifies the PCB business under Kaynes Circuits, which forms part of the company’s efforts to build a more integrated electronics manufacturing ecosystem.
The management said construction and final preparations at the facility are progressing as planned.
“We are on track as per our commitment,” Kunhikannan said during the earnings call while discussing the PCB project.
Commercial production is expected to begin from the next quarter.
PCB Shortage Could Create A Major Manufacturing Opportunity
Kaynes management said the supply situation has become increasingly challenging for PCB buyers.
Muthukumar Narayanaswamy, Managing Director of Kaynes Technology, said the shortage had reached a stage where securing PCB orders was becoming difficult without advance payments.
According to the company, the extended lead times and tight availability could increase the strategic importance of domestic PCB production capacity.
For Kaynes, this creates an opportunity to establish itself as a local supplier at a time when manufacturers are seeking more reliable and geographically diversified sources.
Kaynes Plans Rs 300 Crore PCB Investment In FY27
Kaynes Technology has earmarked around Rs 300 crore in capital expenditure for its PCB business during FY27.
The company spent approximately Rs 230 crore across its OSAT, PCB and EMS businesses during the first quarter. Around Rs 90 crore each was allocated to OSAT and PCB operations, while approximately Rs 50 crore went towards EMS.
The investments form part of Kaynes’ broader expansion across the electronics manufacturing value chain.
Strong Early Customer Interest Before Launch
The reported interest from the unnamed global customer comes at a crucial stage for Kaynes Technology.
With PCB trials already under way and vendor approval completed, the company appears to have secured meaningful customer interest before beginning commercial production.
However, the actual scale and financial impact of the opportunity will depend on the outcome of the trials and the conversion of customer interest into confirmed orders.
For now, Kaynes’ management says the company remains on schedule to start commercial PCB production next quarter, while growing global supply constraints could provide additional momentum for the new business.