Israel’s PCB Technologies Ltd. is currently in talks with an Indian partner to set up a manufacturing unit for printed-circuit boards in the country. The initial investment for the proposed Joint-Venture is estimated at $60 million. Both partners will hold a minority stake and would fund large share of the investment through loans from financial institutions. The JV-agreement is yet to be formalised.
PCB Technologies is a subsidiary of Priortech Group. Migdal Haemek-based parent group holds 70 percent stake in the subsidiary. According to PCB Technologies’ own figures, company controls about 15 percent of market share for printed-circuit board in Israel, putting the total market segment at $950 million.
PCB Technologies offers contract electronic manufacturing to high-end electronic manufacturers (OEMs). It is unclear if the Israeli company also aims to foray into domestic Indian market, including defense. Besides railways and medical devices, company’s products also finds application in defense manufacturing.
In recent years company has been facing stiff completion in domestic Israeli market from suppliers based in Europe, Far-East and United States. In 2014, the company announced its plans to reduce its manufacturing operations in Israel due to company’s declining market share. To keep its products competitive, the company has previously tied up with Chinese manufacturer and now looks to open a manufacturing facility in India.
PCB Technologies might also benefit from recent sweeping deregulatory moves announced by the Indian government, enabling foreign investors to hold a larger stakes in manufacturing-based Joint Ventures, including defence related production.
[Author is Indian journalist based in Europe and Contributing Editor for Jewish Business News]