EMS (Electronic Manufacturing Services) as a category is almost worth 3 Trillion USD. Majority of the value pertains to the manufacturing of apple products. India has only 3-4% of the global EMS market. The majority of the business is still dominated by products like mobile phones and white goods. Going ahead medical , renewables and aerospace are going to take a larger pie. Also since a large part of automobiles is going electric this is also going to be a segment to watch out for.
There are a few listed companies which do have a formidable business in India, since most of these companies are assembly based. The proxies to this industries also will benefit in the long run. As the country’s per person capita crosses 2500 USD in 2-3 years. The internal consumption of these products are bound to increase as well. This will lead to these companies needing more capacity to manufacture and will lead to increasing revenues.
A good example of this trend is to look at Foxconn, the EMS manufacturer who grew rapidly from 1995 – 2010. Sometimes growing 50% year on year. In 2010 they decided they want to grow slower and focus on efficiencies. This opened a huge opportunity for other players to get in the market. Also with countries relying on their own supply chain it is more likely to grow in a country like india which has a dual advantage of consumer interest rising and its ambition of being a developed nation.
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