Syrma SGS and Kaga Electronics joint venture marks a significant cross-border transaction in India’s electronics manufacturing services sector. Syrma SGS Technology Limited has entered into a strategic joint venture with Kaga Electronics India Private Limited, the Indian subsidiary of Japan’s Kaga Electronics Co. Ltd., with Argus Partners advising Syrma SGS on the transaction. The deal reinforces India’s growing appeal as a destination for Japanese electronics manufacturing investment.
Introduction
Syrma SGS Technology Limited has entered into an agreement with Kaga Electronics India Private Limited to establish, develop, and operate a state-of-the-art Electronics Manufacturing Services (EMS) facility in India. Kaga Electronics India is engaged in the production and distribution of electronic components for in-car devices, air-conditioning equipment, and home appliances.
Under the agreement, the two companies will set up a joint venture company to establish, develop, and operate a technologically advanced, state-of-the-art EMS manufacturing facility in India, focusing on Japanese clients. The agreement is dated June 22, 2026.
Syrma SGS Technology Limited will hold a 60% ownership stake in the proposed Joint Venture Company (JVCo), while Kaga Electronics India Private Limited will hold the remaining 40%. The board of directors of the JVCo shall comprise four directors, with two directors nominated by Syrma SGS and two nominated by Kaga. The agreement includes customary rights and restrictions typical for joint ventures, including a right of first refusal for both parties during equity share transfers by the other.
Deal Value
In the JV proposed to be incorporated, Syrma SGS will own 60% of the equity shares for a total consideration of ₹15 crore, and Kaga will own 40% of the equity shares for a total consideration of ₹10 crore. The combined initial equity commitment for the JVCo therefore stands at ₹25 crore. The terms also include provisions for future funding of the JVCo, such as rights issues, and fall-away rights.
Legal Teams Involved
Argus Partners acted as sole legal counsel on this transaction, advising Syrma SGS Technology Limited.
The transaction team consisted of the following members:
- Abhinav Bhalaik — Partner
- Aayush Kumar — Partner
- Paridhi Rastogi — Associate
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Significance and Impact
This transaction is the third joint venture in which Argus Partners has advised Syrma SGS in a short span. Last year, Argus Partners had advised Syrma SGS on establishing joint ventures with Italy’s Elemaster and South Korea’s Shinhyup Electronics. The repeat mandate points to a sustained legal advisory relationship anchored in cross-border EMS transactions.
The Indo-Japanese structure of the JVCo is strategically noteworthy. By partnering with a Japanese company, Syrma SGS aims to enter the global supply chains of Japanese original equipment manufacturers (OEMs), as part of the company’s broader strategy to expand into high-value electronics manufacturing such as industrial and automotive components. Under the collaboration, Syrma SGS will offer its manufacturing expertise and local market presence, while Kaga Electronics brings strong relationships with Japanese customers and the global electronics ecosystem.
The filing confirms that the transaction does not fall within related party transactions and that the parties are not related to the promoter or promoter group companies. This governance-clean structure should facilitate smoother regulatory compliance going forward.
The Syrma SGS–Kaga Electronics India joint venture, structured as a 60:40 Indo-Japanese EMS partnership, represents a considered step in Syrma SGS‘s strategy of building internationally anchored manufacturing capabilities within India. The joint venture aims to leverage advanced technology to serve Japanese clients. Argus Partners, advising Syrma SGS on this and prior similar mandates, continues to establish itself as a go-to counsel for outbound and inbound cross-border joint ventures in the Indian EMS space.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
