Amber Enterprises invests ₹4,200Cr in PCB manufacturing facilities in Tamil Nadu & UP via QIP funding. Aims for 50:50 revenue split between consumer durables & electronics by 2029.
AC Component Giant to Set Up Plants in Hosur & Jewar, Targets $1B Electronics Revenue by FY29.
Amber Enterprises Powers India’s Electronics Ambitions with Mega PCB Investment
New Delhi – Amber Enterprises India’s leading air-conditioner component manufacturer is making a strategic leap into advanced electronics with a ₹4,200 crore investment to establish PCB (Printed Circuit Board) manufacturing facilities in Hosur (Tamil Nadu) and Jewar (Uttar Pradesh). The move aligns with India’s push for self-reliance in critical electronics under the Production Linked Incentive (PLI) scheme.
Key Highlights of the Expansion
🏭 Hosur Facility (Ascent Circuits):
- Investment: ₹990 crore (multi-layer PCBs)
- Government Support: Applied under Electronics Manufacturing Component Scheme
🏭 Jewar Facility (Korea Circuits JV):
- Investment: ₹3,200 crore (high-density interface PCBs)
- Phased Setup: To serve automotive, defense, and telecom sectors
💰 Funding: ₹2,500 crore via Qualified Institutional Placement (QIP)
Strategic Shift: From AC Parts to High-Tech Electronics
1. Revenue Rebalancing Act
| Division | Current Revenue (70%) | FY29 Target (50%) |
|---|---|---|
| Consumer Durables (AC) | ₹5,800Cr | ₹7,500Cr |
| Electronics & Others | ₹2,500Cr | ₹7,500Cr |
2. Market Growth Drivers
🔹 AC Industry Expansion: 15M → 35M units annually by FY30
🔹 PCB Demand Surge: $12B Indian market (CAGR 18%)
🔹 Railway/Defense Push: Kavach, UAVs need indigenous PCBs
3. Global Competitiveness
- Korea Circuits JV brings HDI PCB expertise
- Unitronics Acquisition (Israel) adds industrial automation tech
Leadership Vision
Jasbir Singh, Chairman & CEO:
“We’re transitioning from being India’s AC backbone to becoming an electronics powerhouse. Our $1B electronics revenue target will come from serving 5G, defense, and smart mobility.”
Industry Analyst (Counterpoint Research):
“Amber’s dual PCB strategy captures both mass-market and high-margin niche segments—a template for Indian OEMs.”
Why PCBs & Why Now?
1. PLI-Led Opportunity
- $300M incentives for PCB localisation
- 40% import substitution potential in 5 years
2. Synergies with Existing Biz
🔄 Vertical Integration: PCBs for Amber’s own AC controllers
🛠️ Cross-Industry Leverage: Same plants serve auto, railways, IoT
3. Geographic Advantages
📍 Hosur: Proximity to Bengaluru tech hub & Tamil Nadu’s EMS cluster
📍 Jewar: Future electronics ecosystem near Delhi-Mumbai Freight Corridor
Investment Breakdown
📌 Phase 1 (2024-26): ₹1,500Cr (Hosur ML-PCBs + Jewar pilot)
📌 Phase 2 (2026-28): ₹2,700Cr (HDI scale-up + defense certifications)
Challenges & Mitigation
⚠️ Tech Transfer Risks: Korea Circuits’ IP safeguards
⚠️ Raw Material Dependence: Copper clad laminates still imported
⚠️ Talent Gap: Partnering with IITs for PCB engineering courses
Investor Takeaways
💡 Opportunity: Amber’s QIP at ₹2,500Cr (Aug 11 AGM)
💡 Watch: Unitronics integration boosting automation
💡 Risk: Slow 5G rollout could delay HDI PCB demand
The Bigger Picture
🇮🇳 India’s PCB Market:
- Currently 85% import-dependent
- 3X growth expected by 2030 (EVs, 5G, IoT)
🔌 Global Trends:
- China+1: Apple, Samsung diversifying PCB sourcing
- Automotive Shift: 50% more PCBs in EVs vs ICE vehicles
Final Thoughts
Amber’s bold pivot from AC parts to strategic electronics mirrors India’s own industrial evolution. By 2030, these PCB plants could position the company as the Foxconn of Indian circuit boards—powering everything from smart ACs to missile systems.
