The Company's Board of Directors met today to review the outlook and strategy of the Cyient Designled Manufacturing (DLM) business. The global electronic manufacturing services market is projected to grow significantly in the next 10 years. India's market share for electronic manufacturing services (EMS) is expected to increase significantly driven by growing demand in key industries such as Industrial applications, Healthcare, Defense, and Automotive.
Cyient DLM has strong potential for growth in these industries with its high-complex, medium-volume manufacturing capabilities. The Board discussed the need to determine an optimal legal/ownership structure for housing the DLM business to enable scaling up and participation in this opportunity.
Looking at the enormous opportunities to maximize shareholder value, the Board approved the formation of a sub-committee to evaluate the options on part-divestment, including but not limited to IPO, spin-off, or partnership with a strategic investor of the Cyient DLM business. The option will be subject to various regulatory / statutory approvals under applicable law. The sub-committee will submit the outcome of the evaluation to the Board for approval.