Contract manufacturing of electronic equipment is a very small market in India, accounting for less than 10% of the overall production revenue in 2006. However, with global electronic equipment manufacturers across application categories like Consumer, Communications, and Data processing — which includes products such as LCD/plasma TV, DVD players/recorders, set-top boxes, portable media players, mobile phones, desktop and mobile PCs, etc. — setting up manufacturing facilities in India, contract manufacturing of electronics has the potential to grow up to 30% of overall electronics production revenue in 2011. Going ahead, we believe more consumer applications like set-top boxes, color TVs, and appliances will contribute to the growth of EMS players’ production revenues in India. The entry of EMS players will also spur the growth of the local electronics component manufacturing segment, which is virtually non-existent currently except for a few suppliers of components like bare PCBs, connectors, plastic moulds, and transistors.
