Polymatech Electronics, an opto-semiconductor manufacturer with plants across six countries, plans to invest over USD 2 billion in equipment and technology over the next one to two years as it scales capacity, enters the memory chip market, and prepares for a stock market listing, its Managing Director and Chief Executive Officer Eswara Rao Nandam said.
“Next one year to two years, more than USD 2 billion will be invested into the equipment and technology,” Nandam said in an exclusive interview with BW Businessworld, adding that some technology the company had outsourced would also be paid for from this outlay.
The company, which manufactures composite semiconductors on sapphire substrates rather than conventional silicon, targets revenues of USD 10 billion by 2030, with each of its global plants expected to individually touch USD 1-1.5 billion in revenues by that year.
Global Footprint
Polymatech currently operates two plants in Asia Pacific, one in Singapore and one in India, two in Europe, in Estonia and France, and two in the United States, in California and Austin, Texas. A facility in Bahrain has been paused due to regional geopolitical conditions and will resume operations once clearances are received, BW Businessworld has learned.
The company is also developing a major hub in Raipur, Chhattisgarh, where the Ministry of Commerce has recently notified 35 acre of land as a Special Economic Zone (SEZ). A second plot in Chennai will serve as a medical instruments assembly park. Ingot and wafer fabrication capacities will increase “drastically” this year and next, Nandam said, with substrate operations expanding in Estonia and new plants coming up in Raipur and Austin.
Memory Market Entry
Nandam said the company has set up infrastructure in Singapore to manufacture DRAM memory modules, a new vertical for Polymatech. “Up to 2030 the memory shortage, chip shortage will be there. It will be a big business for us,” he said.
He explained that advanced memory chips, largely restricted for export by the United States export controls, are procured in Singapore, assembled into modules, sent to Estonia where substrates and printed circuit boards are made, and then sold to customers. The Austin, Texas facility was also opened partly to address these supply chain constraints.
Revenues And Margins
Polymatech crossed revenues of approximately Rs 650 crore when it first filed for a stock market listing in FY24, reached Rs 1,220 crore the following year with a profit after tax (PAT) growth of around 25 per cent, and about Rs 1,912 crore in the financial year ending March 2025, as per Tracxn data.
The company’s PAT stood at 18-19 per cent in its early commercial years of 2019 and 2020, during the Covid era. Nandam said that as the business matures, PAT would rise to 40-45 per cent.
Products And Customers
Polymatech’s primary products are opto-semiconductors, devices that interact with light across various spectrums. Its portfolio covers backlights for mobile phones and laptops, near-infrared chips for medical applications including vein finders and surgical equipment, photosynthesis lighting for agriculture, and Vitamin D and Vitamin A related medical applications. The company also supplies chips for space and aerospace applications, including to customers such as SpaceX, where components must withstand extreme temperature conditions.
“I proudly say, in your handphone, Polymatech product is there. In your laptop, Polymatech product is there,” Nandam said. Customer names are under non-disclosure agreements, but Nandam indicated that any major global electronics company would be a buyer.
All current revenues for Polymatech come from customers based in the United States and Europe, with no domestic Indian customers at present.
The company manufactures composite semiconductors on sapphire, growing its own sapphire ingots, cutting and polishing them into wafers at its France facility, and then sending the wafers to its plants for expansion, packaging, and module assembly. Chip design is proprietary. Foundry activity is currently outsourced. From January 2026, Polymatech began converting chips into finished products, moving further up the value chain. Its chip capacity runs into billions of units across its global plants.
IPO Plans
Polymatech first applied for an initial public offering in FY24, seeking to raise Rs 750 crore, with the Draft Red Herring Prospectus (DRHP) to exchanges in September of that year. Both exchanges, BSE and NSE, cleared IPO papers after approximately seven months, but the Securities and Exchange Board of India (Sebi) raised a concern relating to undisclosed share trading by a family member connected to the company’s merchant banker, which the company said was beyond its control.
By the time the issue arose in March, Polymatech had already reached Rs 1,220 crore in revenues and chose to withdraw and refile with an updated prospectus at a future time. The company subsequently raised funds privately and did not pause its expansion.
Nandam said the current global environment, including ongoing conflicts in the Middle East and geopolitical restrictions on semiconductor equipment and technology, makes 2026 uncertain for a listing. “Today it is not the right time, that’s what I think,” he said. However, he added: “If everything goes well, yes, definitely we will file DRHP this calendar year itself.” |
