Beyond PLI – How Component Manufacturing Can Redefine EMS Profits
Owning critical components like PCBs strengthens client relationships, expands order size, and improves long-term margin stability beyond incentives.
Think of an EMS company as a contractor building a house using someone else’s bricks. Margins stay small. Control stays limited.
Now imagine the contractor starts making the bricks too.
That is the shift underway. Many EMS players expect 70–80% integration into component manufacturing over the next few years. The key line: growth and margin expansion even without PLI support.
PLI has supported profitability, but policy timelines create uncertainty. What truly changes the game is control over components—especially PCBs.
Here’s the simple math explained by industry leaders:
If PCB revenue is ₹1,500 crore and PCB typically forms about 10% of total PCBA value, that same client base can generate roughly ₹13,500 crore of EMS assembly revenue.
One product pulls the other.
When you manufacture the PCB, you naturally position yourself to win the full assembly contract. It is not just about component margins. It is about securing the entire value chain.
That creates three advantages:
• Higher wallet share from existing customers
• Stronger order visibility
• Margin resilience beyond government incentives
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