As the world races toward immersive displays and smart eyewear, can India build its own XR ecosystem? In a conversation with Himanshu Verma from Kaynes, EFY’s Vidushi Saxena finds out how the company is laying the groundwork for locally made waveguides and next-gen XR technology.
Q. Can you please briefly introduce Kaynes Technology and its journey in the electronics manufacturing space?
A. Kaynes Technology has been there for 37 years in this space. It is a publicly listed, major electronics system design and manufacturing (ESDM) player in India. It works across a wide range of sectors including automotive, aerospace, defence, industrial, railways and consumer electronics.
The company has recently placed a strong focus on the extended reality (XR) segment, starting with waveguides as the foundation of its strategy. I lead the division responsible for building the XR business, where we are working across technologies that are closely related to XR, smart glasses and head mounted displays.
Q. What has motivated Kaynes to venture into advanced augmented reality (AR) waveguide manufacturing?
A. With Meta launching its XR glasses, which are essentially AR smart glasses, it is clear that major global players have already entered this space. Based on strong market insights, we see that the demand for smart glasses, AR head-up displays, defence applications, and head-mounted displays is growing at a breakthrough pace.
Our approach is not just to be another player in electronics manufacturing. Instead, we aim to build expertise in key components and take control of the supply chain. The idea is to enter a rapidly growing market with strong capabilities and end-to-end ownership.
Q. Can you tell me about your product portfolio?
A. Our largest vertical is automotive, where we are a Tier 1 supplier to major original equipment manufacturers (OEMs) and manufacture key electronic systems like instrument clusters, lighting controllers and other vehicle electronics. We also supply high-reliability products for the defence sector, including thermal imaging and mission-critical systems developed with our partners.
In the consumer segment, we focus on complex manufacturing such as BLDC fans, advanced appliances and consumer robotics. Our roadmap expands into full smart glasses and AR and VR devices in the near future.
Q. Which industry has the most demand for your products?
A. The automotive industry currently shows the highest demand for XR-related technologies, particularly for head-up displays and immersive training systems.
Q. How are you expanding your manufacturing presence to serve global customers?
A. We have a global footprint with Kaynes Digicom in the US and August Electronics in Canada, which strengthens our ability to support international customers. In addition, our partnership with DigiLens focuses on expanding India’s role in XR and optics manufacturing.
Q. Do you manufacture everything here or are some raw products being imported?
A. Kaynes manufactures everything in India with deep integration and local value addition, while selectively sourcing specialised optical materials internationally.
Q. Can you explain what the AR waveguide manufacturing line contains?
A. Waveguides are essentially the screens for smart glasses and head-up displays in automotive applications. A typical display consists of two main components: a projector and a waveguide. The projector powers light through the waveguide, making the image appear directly on the glass. In simple terms, waveguides act as the display for smart glasses.
They are a core component that involves complex physics and advanced technologies, such as thin film deposition, which is crucial for both semiconductor and display manufacturing.
Q. Are these products already on the market?
A. Yes, waveguides are already available in the market, and we established our division around the end of September. We are working with pilot customers and will begin shipping some of these products in the coming weeks. By the beginning of next year, we expect to see products in the market powered by our waveguides.
Q. What companies are you delivering the product?
A. One of our partners, similar to Meta, is working on AR smart glasses, which is a major innovation coming out of India. By manufacturing waveguides locally, we are enabling them to be early adopters and innovators of this technology. In addition, we are working on two other segments. The first is head-up displays for defence and aerospace, which is a longer term project expected to roll out around mid next year after testing. The second is automotive head-up displays, where we are currently running proof of concept evaluations. These three segments are showing strong traction for these early stage technologies, and we are supplying key components for all of them.
Q. How has the partnership with DigiLens benefited Kaynes, and what synergies or technologies has it brought to your operations?
A. There was a strong alignment between Kaynes and DigiLens. They are primarily an IP and technology company with deep expertise in this field.
Kaynes brings manufacturing excellence to the table. While DigiLens has developed great technology and products, they needed support in scaling and optimising the manufacturing process. By partnering with Kaynes, DigiLens benefits from our manufacturing expertise to produce and refine their waveguides efficiently.
Q. Coming to DigiLens’ crystal wave, how is it unique compared to the other AR display technologies?
A. The key advantage of their proprietary material is that it enables two major benefits. First, the luminous efficiency of the waveguides is extremely high. This means that even in very bright environments, the displays remain sharp and clearly visible. Their material, called crystal clear technology, ensures this level of brightness and clarity.
Second, it minimises eye glow, which can be socially noticeable when using smart glasses. This makes the experience more comfortable and natural for users, and their technology is among the best performers in reducing eye glow.
In addition, we are collaborating with them on the manufacturing side, where their process allows us to produce these components at high yield and lower cost, addressing a common challenge in the industry.
Q. Do you also aim to export these products?
A. The technology is still at a stage where it has not been commoditised, so there are significant opportunities for export. With Kaynes’ global presence, it becomes easier for us to reach international markets as well.
Q. Did you also face any challenges in setting up India’s wave guide?
A. Doing something for the first time requires a lot of patience and expertise that is not easily available in the market. You need the right engineers and the right team to set up very complex and high value equipment. These were the main challenges we faced, especially because while India has strong electronics capabilities, optics is a field where we need to build more competency.
Q. How is critical optics knowledge being shared and implemented in India?
A. DigiLens brings a strong IP portfolio, with hundreds of patents, particularly in volumetric holographic grating technologies, which form the core of waveguides. The knowledge behind these patents is being shared with us in a way that allows Kaynes to build in-house competency, especially in understanding the manufacturing processes.
All of the key machines from DigiLens are installed at our Mysuru and Chamarajanagar plants, and our skilled operators have gained full expertise in running them.
Q. As you mentioned the skilled workforce, do you also partner with universities, provide training for engineers, or hire them directly?
A. At Kaynes, much of our workforce comes from local technical universities. We hire many fresh graduates and provide extensive training to equip them with the skills needed for advanced manufacturing. Specifically for waveguides, we have freshers working alongside PhD-level experts in optics and lasers, since these are very complex machines. The goal is not only to build a skilled workforce but also to ensure that the right experts are in place to operate the machines and train the next generation for these emerging technologies.
Q. What is next for Kaynes in the XR-AR space? Is there any new expansion coming up?
A. We are developing core technologies like waveguides, projectors, electronics, and the software and firmware that power XR devices. At the same time, we are applying this expertise across multiple verticals.
While consumer applications are a major growth area, there is also strong demand for AR glasses in military, defence, and industrial use cases, as well as head-up displays for automotive and defence. By mid next year, we expect to see a range of products across these domains powered by the waveguides we are manufacturing in Chamarajanagar (near Mysuru, Karnataka).
Q. What message would you like to convey to investors, consumers, or the tech enthusiasts about India’s role in the XR evolution?
A. I would say that XR and smart glasses are at an inflection point in India, similar to where mobile phones were some time ago when screens were getting bigger and touch technology was emerging. If we capture this moment, smart glasses could define the next 30 to 40 years, potentially succeeding smartphones.
India has the opportunity to lead, but it requires collaboration to develop more products, technologies, and opportunities in XR. From my interactions with people in China, the UK, and the US, it is clear that India is advancing rapidly. Kaynes is positioned to support and collaborate in accelerating this growth.
