$SYRMA

Syrma SGS Technology shares gained nearly 3 percent on Tuesday after the company announced a strategic partnership with Japan's Kaga Electronics to establish an electronics manufacturing services (EMS) facility in India. In a regulatory filing, Syrma SGS said the two companies have signed an agreement to set up, develop, and operate a state-of-the-art EMS manufacturing facility aimed at catering primarily to Japanese customers. As part of the arrangement, a joint venture company (JVCo) will be incorporated, with Syrma SGS Technology holding up to a 60 percent stake and Kaga Electronics owning the remaining 40 percent. Under the proposed structure, Syrma SGS will make investments corresponding to its majority ownership in the JVCo, while Kaga Electronics will invest for a 40 percent stake. The partnership is expected to strengthen the company's manufacturing capabilities and enhance its presence among Japanese clients seeking production opportunities in India.