In conversation with EFY’s Nitisha Dubey, Jatin Chudasama of Allnyx Technologies discusses Gujarat’s electronics ecosystem, policy landscape, market opportunities, and workforce challenges, while outlining the company’s scaling and long-term growth plans.
Q. How do you view Gujarat’s overall ecosystem for companies operating in your segment?
A. Gujarat’s electronics manufacturing ecosystem is in a clear phase of transition. While growth intent and investment momentum are visible, the structure remains relatively unorganised, with limited standardisation in policies and business practices. Boundaries across the value chain are getting increasingly blurred, OEMs are entering EMS, EMS players are expanding into design and box-building, and PCB fabricators are offering integrated design-to-manufacturing services.
Q. What kind of policy support from the Gujarat government has been most impactful for your business?
A. Policy support has delivered mixed outcomes. PLI incentives for EMS players have been beneficial, providing financial backing that encourages capacity expansion and technology investment. However, extending similar incentives to OEMs has increased competition for EMS providers.
Additionally, Make-in-India incentives to OEMs have reduced outsourced EMS volumes by nearly 20-25 per cent. While the intent of these initiatives is positive, a more balanced policy framework would help sustain the ecosystem.
Q. How does Gujarat compare with other states in terms of market potential for Allnyx?
A. Gujarat offers strong long-term potential compared with many other manufacturing hubs. The state has recorded significant GDP growth, particularly in electronics and IT, and the market is distinctly quality-conscious rather than price-driven. This aligns well with Allnyx’s positioning.
The state also hosts a strong mix of PCB fabricators, design houses, and EMS players operating in both turnkey and job-work models. A clear shift is underway, from job-work to turnkey solutions and from China-centric sourcing to India-based manufacturing.
Q. Which customer segments in Gujarat are driving demand for your offerings?
A. Demand is being driven by industrial automation, automotive electronics, medical technology, wearables, and IoT-based applications such as tracking systems and sensor-driven devices. These sectors require reliability, consistency, and scalability, and increasingly prefer partners capable of supporting them from prototype development to volume production.
Q. What motivated Allnyx to participate in EFY Expo Gujarat, and how valuable was the platform?
A. EFY Expo Gujarat served as a strategic platform to strengthen brand presence and engage directly with a relevant audience.
It was particularly valuable for connecting with startups, a key focus area, as many of these companies are expected to evolve into future high-volume customers.
Q. What are Allnyx’s growth plans in Gujarat over the next few years?
A. Allnyx plans to expand its manufacturing footprint through new facilities, tools, and equipment while increasing overall capacity. The company will continue to focus on industrial automation and the automotive sectors, while diversifying into cable harnessing.
It is also strengthening its B2B ecosystem by forming alliances with OEMs, design houses, consultants, and business associates, while expanding its presence across India and into select African markets.
Q. How does Gujarat fit into your broader national and global expansion roadmap?
A. Gujarat is steadily emerging as the ‘Taiwan of India,’ supported by strong government initiatives, joint ventures, and improving ecosystem development. The availability of skilled resources and the entry of high-tech industries are driving higher production volumes.
Businesses once concentrated in regions such as Tamil Nadu, Karnataka, Maharashtra, and Madhya Pradesh are increasingly shifting to Gujarat.
Q. What key challenges do you face while scaling in the Gujarat market, and how are you addressing them?
A. Scaling in Gujarat presents challenges, including rising competition from new EMS setups, OEMs offering EMS services, and large players expanding aggressively. Skilled manpower scarcity and high attrition also remain concerns. To address these issues, Allnyx is strengthening digital engagement, participating in targeted expos, and investing in certified training and upskilling programmes.
