India’s Syrma SGS to acquire majority stake in Elcome
This strategic move supports Syrma SGS’s long-term roadmap to build a robust defence electronics platform and strengthen its presence in high-value technology domains. Syrma is also set to invest USD 180 million in setting up a facility in Andhra Pradesh.
Indian EMS firm Syrma SGS has announced its plan to acquire a majority stake in defence electronics solutions provider Elcome Integrated Systems for ₹2.35 billion (approximately USD 26 million).
The acquisition will be executed through a mix of primary capital infusion and secondary share purchase. The remaining 40% stake will be acquired in multiple tranches over the next three years, linked to performance and earn-out milestones, Syrma said.
Elcome specializes in navigation, communication, surveillance, and platform automation systems catering to India’s defence and maritime sectors. As part of the transaction, Elcome’s board has also approved the acquisition of Navicom Technology International, which will become its wholly owned subsidiary post completion of the first tranche, Syrma said.
This strategic move supports Syrma SGS’s long-term roadmap to build a robust defence electronics platform and strengthen its presence in high-value technology domains.
Meanwhile, Syrma SGS is set to invest nearly ₹16 billion (about USD 180 million) to set up a plant near Naidupeta in Tirupati district in the southern state of Andhra Pradesh. The new facility is expected to create 2,170 high-skill jobs in the state.
“This project will play a key role in reducing India’s USD 70 billion annual electronics import bill and drive backward integration for the domestic PCB ecosystem,” Andhra Pradesh Minister for HRD and IT Nara Lokesh said.