On Thursday, Kaynes Technology and the Karnataka IT&BT Department entered into a Memorandum of Understanding (MoU) to establish a semiconductor assembly and testing facility (OSAT) in Mysuru. The agreement involves an investment of Rs. 3,750 crore and aims to create around 3,200 job opportunities.
Kaynes Circuits India Pvt. Ltd. will spearhead the establishment of a Printed Circuit Board (PCB) manufacturing plant for producing complex multi-layered boards. The MoU with Kaynes will put Karnataka in the forefront of OSAT and PCB, said a press release.
The signing of the MoU saw the presence of Chief Minister Siddaramiah, along with Minister for IT/BT and Rural Development and Panchayat Raj Priyank Kharge, Chief Secretary Vandita Sharma, Commissioner for Industrial Development and Director of the Department of Industries & Commerce, Gunjan Krishna, and CEO of KDEM Sanjeev Gupta.
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Growth of Kaynes Technology
At 10:26 am; the stock of Kaynes quoted 8 per cent higher at Rs 2,012, as compared to 0.63 per cent decline in the S&P BSE Sensex. With Friday’s rally, the stock zoomed 261 per cent from its issue price of Rs 587 per cent. The company made market debut on November 23, 2022.
In its FY23 annual report, the company said that the domestic demand for electronics is anticipated to rise. It will rise at compounded annual growth rate (CAGR) of 10.6 per cent over the next fve years. It will be starting 2022, reaching a market worth Rs 13,46,300 crore. In terms of exports, India’s electronics export has reported a stupendous growth of 49 per cent to $25.3 billion in 2022-23, even when the overall exports growth stood at 6.5 per cent.
The increase was mainly attributed to increased production and shipping of mobile phones. While the rise in exports is a positive sign for India. It’s important to note that India’s exports stood at $25.3 billion. It is significantly lower compared to China’s $671.5 billion during the fiscal year 2022-23. This situation presents significant growth possibilities, particularly when countries importing goods are seeking alternatives to China.
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