New Delhi, Nov. 14 -- India's homegrown electronics manufacturing companies - from listed players such as Dixon Technologies and Syrma SGS to privately held Tata Electronics - are aggressively expanding into new product categories and pursuing acquisitions.

Despite significant revenue growth, the sector has been grappling with thin margins. "Most of the companies will likely continue acquisitions as they look to set up a presence in new markets," said Harshit Kapadia, vice-president at broking firm Elara Capital.

"These companies are also looking to expand their margins beyond the high-volume industry of electronics assemblies, and the best way to expand margins is by venturing into industrial electronics across sectors-where volumes ar...