Electronics manufacturing services (EMS) company Cyient DLM is expanding beyond its traditional aerospace, defence and industrial businesses, with the company identifying AI infrastructure, data centres, semiconductor capital equipment and robotics as its next major growth engines over the next few years. The management said these new segments will form the core of its “Expand” strategy for FY27 to FY29 as it seeks to tap emerging opportunities in high reliability electronics manufacturing.
Speaking during the Q1 FY27 earnings call, Managing Director and CEO Rajendra Velagapudi said the company sees AI infrastructure creating fresh demand for compute systems, networking hardware, power electronics and data centre equipment. “AI is creating new demand for compute infrastructure, data centre systems, power electronics, advanced hardware, networking and related supply chain ecosystems,” he said, adding that Cyient DLM intends to selectively participate in areas where it can build differentiated capabilities.
The company also highlighted the growing opportunity in semiconductor capital equipment as advances such as chiplets, 2.5D and 3D packaging, and high-bandwidth memory increase the complexity of testing and assembly equipment. Alongside its existing focus on aerospace, defence, industrial, medical and automotive electronics, Cyient DLM plans to expand into AI infrastructure, data centres and robotics, targeting higher value and higher margin markets.
While the company has already hired dedicated sales teams and formulated its strategy, management indicated that commercial traction is likely to emerge gradually. Velagapudi said order inflows from AI infrastructure and data centre businesses could begin this year, with revenue contributions expected to build over the next few years. He also noted that the company does not require significant additional capital expenditure, as existing manufacturing infrastructure is largely sufficient to support these opportunities.
Chairman Krishna Bodanapu said Cyient DLM has entered FY27 with its highest-ever order book and believes its established position in high-reliability electronics manufacturing provides a strong foundation to capture opportunities emerging in semiconductor equipment, AI infrastructure and data centres. “We find ourselves in a good position, both with the core business… but also with some of the expansion that we’re looking at, which includes semiconductor equipment, data centres, etcetera,” he said.
