Image Courtesy: dixoninfo.com
Key Highlights
- Government finalizes list of vendors which can benefit from PLI
- Plan to expand will expand their capacity by 16 million in the next couple of years
- Company expects it to contribute ~40% of the overall revenue by next financial year
Government has finalized the list of vendors which can benefit from the Production Linked Incentive (PLI) scheme aimed at encouraging assembly of mobile phones in India. Ministry has approved applications of the following participants. Category wise details of companies who received an approval
-Mobile above Rs 15000:Samsung, Foxconm Hon Hai, Rising star and Pegatron
-Mobile phone for the domestic market: Application of Lava, Bhagwati (Micromax), Padget Electronics (Dixon Tech), UTL Neolyncs, Optiemus electronics.
-Specified Electronic Components: Application of AT&S, Ascent circuits, Visicon, Walsin, Shashra and Neolync
RELATED NEWS
Dixon Technologies shares rose nearly 4% after its arm, Padget Electronics, was approved as a mobile manufacturing partner under the government's PLI scheme for Large Scale Electronics Manufacturing. Under the scheme, the company will get an incentive of 4 per cent to 6 per cent on incremental sales (over the base year) of goods manufactured in the country. Saurabh Gupta the CFO of the company joined ET NOW to talk about the synergies for the company and how its plans to expand. He started by saying they are very excited about this opportunity as they have got large contracts with global brands for serving not only the domestic market but also the export market. The company plans to start the production of mobiles under the PLI by Q4FY21. He further added that the company currently has a smartphone capacity of 11 million today and will expand their capacity by 16 million in the next couple of years. The overall capacity of a smartphone would be around 27 million and that would contribute 18-20% to India’s smartphone need. He further added that in 5 years time the company could get revenues of 25k-30k crore and will also create significant employment.
Mobile Phones currently contribute around 12% of their revenues, post the PLI the company expects it to contribute ~40% of the overall revenue by next financial year and keep increasing year on year. He further added that its will start with 40% and the revenues will gradually increase to 50-60% over the years.
The Link LonkOctober 07, 2020 at 05:07PM
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Production linked incentive scheme booster for Dixon Technologies - Times Now
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