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Kaynes Technology Faces Investor Scrutiny as CEO Steps Down Despite Strong Fundamentals
Equities, Markets - September 19, 2025

Kaynes Technology Faces Investor Scrutiny as CEO Steps Down Despite Strong Fundamentals

Kaynes Technology Faces Investor Scrutiny as CEO Steps Down Despite Strong Fundamentals

On October 31, 2025, Rajesh Sharma, the CEO of Kaynes Technology India Ltd., announced his resignation to pursue new opportunities. Sharma was instrumental in the company’s growth, leading it through a successful IPO and multiple expansions through its subsidiaries like:
* Greenfield Manufacturing Facility in Bhopal set to commence operations by mid-2026, will serve multiple verticals, including automotive, aerospace, defense, medical devices, and IoT applications (Kaynes Electronics Manufacturing Pvt. Ltd.).
* Outsourced Semiconductor Assembly and Test (OSAT) Facility in Sanand, Gujarat: The company has reached the critical product validation trial phase and is preparing to begin commercial operations by January 2026 (Kaynes Semicon).
* Proposed ₹4,995 Crore Investment in Tamil Nadu for the establishment of manufacturing facilities, including greenfield projects and capacity expansions (Kaynes Circuits India).
* Acquisition of August Electronics: In a strategic move to expand its capabilities and geographic reach, Kaynes Technology acquired August Electronics, a Canadian electronics manufacturing company. This acquisition adds manufacturing capacity and capabilities in North America and brings strong customer relationships in key high-value segments.
These expansions reflect Kaynes Technology’s commitment to strengthening its manufacturing capabilities, diversifying its product offerings, and expanding its global footprint. However, with CEO Rajesh Sharma’s resignation, investors may be concerned about the continuity and execution of these strategic initiatives. The company’s ability to maintain momentum in these expansion projects will be crucial in sustaining its growth trajectory.

Stock Performance
Following the announcement of CEO Rajesh Sharma’s resignation, Kaynes Technology India’s stock experienced a decline, reflecting investor apprehension. The company’s shares fell by approximately 4–5% intraday, touching lows of ₹6,882 on the NSE. This drop indicates market sensitivity to leadership changes, especially when a single individual has significantly influenced a company’s trajectory.
Despite the leadership change, Kaynes Technology reported impressive financial results for Q1 FY26. The company achieved revenues of ₹673.46 crore during the quarter, establishing a strong growth of 33.63% year-on-year. EBITDA stood at ₹1,130 crore, registering a growth of 69% compared with ₹669 crore posted in the same quarter last year. EBITDA margin expanded by 350 basis points to 16.8% in Q1 FY26, as against 13.3% in Q1 FY25. Profit After Tax (PAT) jumped 49.87% year-on-year to ₹96.08 crore in Q1 FY26. Net worth also grew significantly to ₹45,028 million. These figures underscore the company’s robust fundamentals and growth potential.

Valuation Concerns: Premium Pricing
Kaynes Technology India Ltd. is currently trading at a significant premium relative to its peers, reflecting high market expectations for sustained growth and operational excellence. The company’s trailing twelve-month Price-to-Earnings (P/E) ratio stands at approximately 151, more than double the industry average of 72.63, while Price-to-Book (P/B) ratio is 16.5, markedly above comparable EMS companies. Enterprise Value to EBITDA (EV/EBITDA) is similarly elevated at 84.92x, highlighting the market’s willingness to value the company’s earnings at a premium. These valuation multiples are underpinned by strong financial performance, including FY2025 (as on 31st March, 2025) revenue growth of roughly 51% year-on-year reaching ₹2891 crore and net profit of ₹317 crore, a 73% increase from previous year net profit of ₹183 crore, resulting in an EPS of ₹46.93 and an EBITDA margin improvement to approximately 15.1%. Profitability ratios such as ROE and ROCE stand at approximately 10.7% and 14.3%, respectively, with a net profit margin of 10.96%, while the company maintains a conservative debt-to-equity ratio of approximately 0.32, demonstrating solid balance sheet health. However, the recent resignation of CEO Rajesh Sharma introduces leadership uncertainty that could affect execution of ongoing projects

Investor Outlook: Navigating Uncertainty
1. Short-Term Volatility: Investors may experience fluctuations in stock price as the company navigates the leadership transition.
2. Institutional Perspective: Institutional investors are likely to adopt a cautious approach, awaiting clarity on the new CEO’s strategy and vision for the company.
3. Earnings Growth vs. Valuation: While the company has demonstrated strong earnings growth, its high valuation may pose risks if future performance does not align with investor expectations.
4. Strategic Opportunities: Long-term investors may view the current dip as an opportunity to accumulate shares, provided they have confidence in the company’s leadership and strategic direction.
5. Confidence Triggers: Key developments, such as the appointment of a new CEO with a proven track record, robust Q2/Q3 financial results, and continued policy support, could restore investor confidence and stabilize the stock price.

Critical Risk Considerations
* Leadership Transition: The appointment of a new CEO is crucial. A mismatch in leadership style or strategic direction could disrupt operations and affect investor sentiment.
* Execution Challenges: Delays in ongoing projects or client mandates during the transition period could impact the company’s performance and stock price.
* Market Conditions: Broader economic factors, such as global demand fluctuations or geopolitical tensions, could affect the company’s export-oriented business.

Conclusion
Kaynes Technology’s strong financial performance and growth prospects position it as a significant player in India’s electronics manufacturing services sector. However, the recent leadership change introduces uncertainties that investors must consider. While the company’s fundamentals remain solid, the ability of the new leadership to execute the existing strategy and maintain growth momentum will be critical in determining its future trajectory.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Investor Takeaways as Vedanta Shares Slide on Govt Objections to Demerger Plans

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Dixon and Signify Launch 50:50 Lighting Venture
Market News - June 14, 2025

Dixon and Signify Launch 50:50 Lighting Venture

Dixon and Signify Launch 50:50 Lighting Venture

Dixon Technologies partners with global lighting leader Signify to create a 50:50 joint venture aimed at scaling up the domestic lighting manufacturing ecosystem in India.

Summary:
Dixon Technologies (India) Ltd., an important player in India’s electronics manufacturing industry, has revealed a strategic collaboration with Signify, a worldwide leader in lighting solutions. Both companies will hold an equal 50% stake in the newly formed entity, combining Dixon’s local manufacturing prowess with Signify’s global technological expertise. The venture is expected to strengthen India’s self-reliance in lighting solutions, boost local employment, and support the “Make in India” initiative. Dixon shares have seen increased investor interest following the announcement.

In a groundbreaking development poised to transform the lighting industry in India, Dixon Technologies (India) Ltd., an important figure in the electronics manufacturing services (EMS) sector, has formed a joint venture with Signify Innovations India Ltd., the Indian arm of the worldwide lighting giant Signify N.V. (previously known as Philips Lighting).
Both companies will each possess a 50% equity stake in the new joint venture, demonstrating their mutual dedication to enhancing India’s lighting manufacturing capabilities. The announcement has sparked investor optimism, with Dixon Technologies’ shares drawing increased attention in the markets amid expectations of long-term value creation from this strategic collaboration.

A Strategic Alliance for a Bright Future
The newly formed joint venture marks a strategic blend of Dixon Technologies’ manufacturing infrastructure, scale, and supply chain expertise with Signify’s technological innovation, brand strength, and global product design capabilities.
The alliance is focused on designing, manufacturing, and marketing LED lighting products and systems in India. These offerings will cater to both domestic consumption and export markets, aligning with the Government of India’s “Make in India” and Atmanirbhar Bharat initiatives aimed at promoting domestic production and reducing dependency on imports.
In a joint statement, both companies expressed their enthusiasm about leveraging each other’s strengths to tap into the massive potential of India’s lighting market, which is expected to reach $3.5 billion by 2026, driven by rapid urbanization, infrastructure development, and increasing consumer preference for energy-efficient solutions.

Dixon Technologies: Expanding Horizons
Founded in 1993, Dixon Technologies has evolved from a simple manufacturing setup into a diversified EMS giant across segments like televisions, washing machines, mobile phones, security systems, and LED lighting. The company has been instrumental in shaping India’s electronics manufacturing landscape and holds partnerships with several marquee global brands.
This joint venture with Signify further strengthens Dixon’s credentials in the lighting segment, a vertical where the company has already established a presence. The venture is expected to significantly expand its lighting production footprint, enabling more complex product portfolios and innovation.
Commenting on the JV, Mr. Atul Lall, Vice Chairman and Managing Director of Dixon Technologies, stated,
“This collaboration is a milestone in Dixon’s journey. With Signify’s technological leadership and global presence, we aim to co-create world-class lighting products that are made in India, for India and the world.”

Signify: Illuminating with Innovation
Signify, headquartered in the Netherlands, is the world’s leading lighting company. The brand has pioneered energy-efficient lighting innovations for over a century. Known for its iconic Philips lighting products and its growing portfolio of connected lighting solutions under InterAct and WiZ, Signify has a global footprint spanning over 70 countries.
In India, Signify is a trusted name in both the consumer and professional lighting segments, servicing sectors ranging from retail to infrastructure and public utilities. With the new joint venture, Signify will gain a robust manufacturing base in India to support its local operations and optimize its global supply chain.
Mr. Sumit Joshi, CEO of Signify Innovations India, remarked,
“This partnership with Dixon is a step toward building a robust and sustainable lighting ecosystem in India. It aligns with our long-term vision of localization and innovation to meet the evolving needs of Indian customers.”

Market Implications and Shareholder Sentiment
Following the announcement, Dixon Technologies’ shares were focused on the stock exchanges, reflecting investor optimism surrounding the growth prospects and strategic benefits of the venture. The partnership is expected to boost Dixon’s revenue from the lighting division, create additional manufacturing jobs, and drive synergies across operations.
Analysts believe that this 50:50 structure ensures balanced control, shared risks, and a higher level of commitment from both partners, a factor that will likely accelerate the venture’s success.
Market experts also note that the joint venture aligns with the government’s Production Linked Incentive (PLI) scheme, which incentivizes local manufacturing of electronics and lighting products. This alignment is anticipated to enhance the venture’s competitiveness and profitability even further.

Future Outlook: Localization, Innovation, and Export Potential
The joint venture between Dixon and Signify is anticipated to drive significant changes in India’s lighting manufacturing industry. With plans to invest in R&D, automation, and backward integration, the venture could become a hub for innovative and cost-efficient lighting solutions, with a strong potential for exports to Asia, the Middle East, and Africa.
Moreover, the collaboration opens doors for the development of bright lighting and IoT-based products, addressing the rising demand for urban and innovative city projects. As India pushes for sustainability and carbon neutrality, energy-efficient lighting will play a pivotal role, and this venture is well-positioned to serve that demand.

Conclusion
The joint venture between Dixon Technologies and Signify is more than a business collaboration—it is a statement of intent. It represents a confluence of Indian manufacturing might and global lighting excellence. By joining hands, the two firms are poised to redefine lighting innovation, quality, and accessibility in India while supporting national priorities like employment generation, import substitution, and sustainable development.
As the venture unfolds, it promises to light up not just homes and cities but also the path forward for India’s electronics manufacturing future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ACME Solar Unveils 19.8 MW Wind Project in Gujarat

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Dixon and Signify Launch 50:50 Lighting Venture
Market News - June 5, 2025

Dixon Tech Pursues ₹400 Cr JV with HKC

Dixon Tech Pursues ₹400 Cr JV with HKC

Dixon Technologies is set to create a joint venture worth ₹400 crore with HKC Corporation, a Chinese company, aimed at manufacturing display modules for smartphones, laptops, and televisions. With government approval still pending under Press Note 3, this initiative represents Dixon’s bold push for growth in India’s electronics manufacturing sector.

Summary:
In a strategic effort to enhance India’s electronics manufacturing capabilities, homegrown EMS leader Dixon Technologies is considering a joint venture with the Chinese display module company HKC Corporation. The ₹400 crore project aims to localize the production of essential display modules for smartphones, laptops, and televisions. Currently pending government approval under Press Note 3 due to HKC’s Chinese background, this initiative is a crucial step in Dixon’s strategy to diversify its offerings and align with India’s goal of becoming a global electronics hub. Additionally, the company plans to expand into the manufacturing of laptop components, batteries, and camera modules in its upcoming growth phase.

Dixon-HKC: A High-Stakes Partnership
Dixon Technologies, a key player in India’s electronics manufacturing space, is reportedly in advanced discussions about forming a joint venture (JV) with China-based HKC Corporation. HKC is a well-known manufacturer of display panels worldwide, recognized for its strong expertise in liquid crystal display (LCD) and organic light-emitting diode (OLED) technologies.
The proposed JV, valued at ₹400 crore, will focus on setting up a state-of-the-art display module assembly facility in India. The factory will manufacture essential display components for smartphones, laptops, and televisions — products that are witnessing booming demand in India’s growing digital economy.
This move marks a critical milestone for Dixon, enabling vertical integration in one of the most value-sensitive and import-dependent parts of the electronics value chain.

Press Note 3: Regulatory Hurdle for China-Origin Investments
However, the JV is currently under regulatory review. Since HKC is a Chinese-origin firm, the proposal is being evaluated under Press Note 3, a government directive issued in April 2020 that mandates prior approval for foreign investments from countries sharing land borders with India.
The Press Note was part of a broader policy to tighten scrutiny on Chinese FDI inflows after the India-China border tensions. According to government protocols, the Ministry of Commerce and Industry, along with the Department for Promotion of Industry and Internal Trade (DPIIT), is currently evaluating the proposal.
Dixon remains optimistic that the strategic importance of localizing display module production — currently heavily reliant on imports from China and South Korea — will help fast-track the clearance process.

Display Modules: The Missing Piece in India’s EMS Puzzle
Display modules constitute a large share of a smartphone or TV’s bill of materials (BoM). Currently, India imports a bulk of these modules with minimal local assembly or fabrication capabilities. Despite substantial gains under the Production Linked Incentive (PLI) schemes, component-level manufacturing in India remains nascent.
The Dixon-HKC JV would help reduce India’s dependency on imports, lower overall manufacturing costs for OEMs, and boost Dixon’s competitiveness as a contract manufacturer. Moreover, it would signal a strong step toward realizing the government’s “Make in India” and “Atmanirbhar Bharat” (self-reliant India) initiatives.
The new unit is also expected to serve global customers seeking China+1 manufacturing strategies to diversify their supply chains in light of ongoing geopolitical tensions and pandemic-induced disruptions.

Dixon’s Bigger Game Plan: Beyond Assembly
While Dixon is well-recognized for assembling smartphones, televisions, lighting products, and appliances for brands like Samsung, Motorola, Xiaomi, and boAt, it is now aiming to go deeper into the electronics manufacturing value chain.
Company representatives have stated that Dixon intends to make substantial investments to enhance capacities in the following areas:
– Laptop components are available through the newly expanded PLI scheme for IT hardware.
– Battery packs and modules in response to increasing demand for wearable electronics and consumer products.
– Camera modules play a crucial role in both smartphones and laptops.
This pivot from just assembling to manufacturing core components will enable Dixon to capture higher margins and become indispensable to OEMs looking for a full-stack EMS partner in India.

Government’s PLI Boost and Policy Support
The central government’s PLI schemes for mobile handsets, IT hardware, white goods, and semiconductors have been instrumental in encouraging domestic manufacturing. Dixon has already gained considerable advantages from the PLI schemes for mobile devices and IT equipment.
If the proposed Dixon-HKC JV gains government approval, the project is likely to qualify under the PLI for displays — a ₹6,000 crore scheme designed to support the creation of India’s display fabrication ecosystem. This would provide significant fiscal support in the form of incentives and subsidies, further de-risking the venture and enhancing its economic viability.

Industry Reaction and Investor Outlook
The electronics manufacturing industry is pleased with the announcement, as localizing high-value components such as display modules is regarded as a key advancement in the evolution of India’s EMS sector. If successful, the Dixon-HKC JV could attract more component-level players into the Indian market, triggering a multiplier effect across the value chain.
Dixon’s move signals a daring but strategic diversification, leveraging India’s large market, government support, and skilled workforce amid global supply chain trends. However, geopolitical and regulatory challenges will be essential to monitor.

Conclusion: A Strategic Leap in India’s EMS Evolution
Dixon Technologies’ pursuit of a joint venture with HKC comes at a crucial time when India is striving to shift from being a mere assembly hub to a high-tech manufacturing powerhouse. If greenlit, the partnership will not only mark Dixon’s ascent in the value chain but also serve as a blueprint for future Indo-foreign technology collaborations.
As India strengthens its role in the global electronics supply chain, ventures like Dixon’s display module initiative will help reduce import reliance, increase exports, and enhance national capabilities. With appropriate policy support, this could mark a significant milestone in India’s electronics journey.

 

 

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Revitalizing Demand: Growth Strategies of Colgate, HUL, and Marico

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Kaynes Technology Faces Investor Scrutiny as CEO Steps Down Despite Strong Fundamentals
Result Updates - May 23, 2025

Kaynes Technology Reports a Strong Q4: Increase in Revenue and Profit

Kaynes Technology Reports a Strong Q4: Increase in Revenue and Profit

 

In the last quarter of FY2024, Kaynes Technology, a rapidly rising leader in India’s electronics manufacturing industry, produced an outstanding result. The company recorded a significant 43% increase in net profit, totaling ₹116 crore, while revenue climbed sharply by 54% compared to the same period last year. This strong financial showing cements its growing influence within the electronics manufacturing services (EMS) space and demonstrates its strategic ability to scale operations efficiently.

Q4 FY24 Performance Overview

The fourth quarter proved to be a breakthrough period for Kaynes Technology. Its net profit increased from ₹81 crore in Q4 of FY2023 to ₹116 crore. Revenues followed a similar upward trend, reaching ₹675 crore—substantially higher than the ₹439 crore reported a year earlier.
This strong momentum is attributed to an expanded customer base, particularly in the automotive, industrial automation, and defense sectors. Increased demand for electronics in smart devices and vehicles has further strengthened Kaynes’ order pipeline.

Operational Growth and Business Expansion

The company’s continued focus on innovation and capacity expansion has played a vital role in this performance. Over the past quarter, Kaynes enhanced its manufacturing infrastructure, adding new production lines and integrating automation to optimize output. These steps have allowed for greater efficiency and the ability to cater to larger, more complex projects.
Its design and development capabilities also received a boost, aligning with the growing trend of electronics manufacturers offering end-to-end solutions—from concept to production. As businesses across industries embrace digitalization, Kaynes has successfully positioned itself as a go-to partner for smart and connected product manufacturing.
Additionally, sustainability remains a key focus area. The company implemented energy-efficient systems at its facilities and laid down a roadmap to reduce greenhouse gas emissions by 30%
over the next three years.

Leadership Insights

Mr. Ramesh Kannan, Managing Director of Kaynes Technology, shared his perspective on the company’s growth:
“Our performance in the fourth quarter demonstrates both our technology preparedness and customer-centric strategy. We continue to prioritize innovation, quality, and dependability as we grow. We are confident in maintaining this momentum going ahead and are looking at collaborations that complement our worldwide ambition.”
He also mentioned that the company is actively evaluating opportunities to expand in Europe and Southeast Asia, leveraging rising global demand for electronics outsourcing.

Market Sentiment and Analyst Opinions

The announcement was well received by investors, as seen by the rise in Kaynes Technology’s stock after the results were made public. Market experts pointed to the company’s solid order book and improving margins as key strengths that set it apart in a competitive market.
Analyst reports suggested that Kaynes’ strategic alignment with high-growth industries such as EVs, automation, and IoT will likely fuel future growth. Many brokerage firms upgraded their outlook on the stock, citing its strong balance sheet and scalable business model.

Future Roadmap and FY2025 Outlook

For the next fiscal year, Kaynes Technology has big ambitions. The company aims to achieve 30–35% revenue growth by tapping into new verticals and expanding geographically. With India emerging as a hub for electronics production, the company plans to deepen its engagement in the domestic market while continuing to build a global client base.
Investments in artificial intelligence and advanced robotics are also on the cards, as the company aims to enhance efficiency and reduce dependency on manual labor. These technological advancements are expected to further streamline operations and drive higher margins.
The company’s strategy also includes inorganic expansion. Kaynes is exploring acquisition opportunities that could add complementary capabilities and support faster expansion into specialized markets.

Strategic Alignment with National Initiatives

Kaynes Technology continues to align its goals with India’s broader industrial development programs like “Make in India” and “Digital India.” These initiatives promote local manufacturing and technological innovation, areas where Kaynes already holds a strong position.
The company’s participation in these programs not only enhances its visibility and credibility but also opens up avenues for government contracts and strategic collaborations.

Conclusion

Kaynes Technology’s fourth-quarter results have established it as one of the most dynamic players in India’s EMS landscape. With a strong focus on innovation, sustainability, and market expansion, the company is well-equipped to sustain its growth in FY2025 and beyond.
As global industries increasingly rely on advanced electronics and embedded systems, Kaynes stands at the forefront, ready to shape the next phase of the electronics manufacturing revolution.

 

 

 

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Shiprocket Eyes ₹2,400 Cr as IPO Plans Take Flight

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Rulka Electricals Secures ₹16.34 Crore in New Orders, Stock Hits Upper Circuit
Economy, Market News - April 28, 2025

India Boosts Electronics Component Manufacturing with New Incentive Scheme

India Boosts Electronics Component Manufacturing with New Incentive Scheme

 

The government unveils a ₹23,000-crore plan to boost domestic output.

To significantly strengthen its domestic electronics production base, the Indian government has officially announced the operational framework for the ₹23,000 crore Electronics Components Manufacturing Scheme (ECMS). This strategic initiative is designed to substantially increase the domestic value contribution within the electronics sector and bolster India’s standing in the global supply network.

Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, emphasized that companies demonstrating strong local design expertise and adherence to stringent ‘six sigma’ quality standards will be given priority in the application process. He suggested that businesses lacking in-house design teams in India risk missing out on the anticipated rapid expansion of the nation’s electronics ecosystem over the next five years.

The online application portal for this six-year scheme will be operational from May 1st. This timely launch coincides with ongoing global geopolitical shifts, presenting a favorable environment for India to attract adjustments in global value chains. S Krishnan, Secretary of the Electronics and IT Ministry, assurance that the ECMS would allow India to significantly boost its share of the world’s electronics production, The objective of this initiative is to increase the current level of domestically added value in electronics manufacturing from 3% to 8% within a six-year timeframe.

The government anticipates that the ECMS will attract new investments totaling ₹59,350 crore, generate approximately 91,600 direct jobs, and facilitate production valued at an estimated ₹4,56,500 crore. The scheme offers a flexible incentive structure, including both turnover-linked and capital expenditure (capex) incentives, or a combination, tailored to the specific needs of the manufactured components. It’s worth noting that a component of both categories of financial benefits is tied to the generation of employment opportunities.

Wide-Ranging Support for the Electronics Ecosystem

The ECMS provides extensive coverage across crucial segments of the electronics manufacturing value chain. This includes key sub-assemblies like display and camera modules, fundamental bare components such as multilayer printed circuit boards (PCBs) and lithium-ion cells, and specialized advanced bare components like High-Density Interconnect (HDI) or Modular Semiconductor Assembly Platform (MSAP) PCBs. Furthermore, the scheme extends support to the essential supply chain ecosystem and the acquisition of necessary capital equipment for electronics manufacturing.

The period for submitting applications for sub-assemblies, fundamental components, and certain specified fundamental components will last for three months. Conversely, the supply chain ecosystem and capital equipment sectors will have an extended application period of two years.

Industry Leaders Express Strong Support and Commitment

Atul Lall, Vice Chairman and Managing Director of Dixon Technologies, a leading electronics manufacturing services provider, affirmed the company’s strong commitment to participating in at least four component categories under the ECMS, indicating significant upcoming investments.

Industry bodies have highlighted the critical need for international collaborations and strategic state-level partnerships to effectively expand and strengthen India’s electronics manufacturing ecosystem.

Building on Existing Growth Momentum

Minister Vaishnaw highlighted the significant fivefold increase in India’s domestic electronics production and the sixfold surge in exports over the past decade. This existing strong growth, he asserted, provides a robust foundation for the ECMS to achieve its objectives. He noted that the initial groundwork for establishing a strong electronics industry in India has been laid, paving the way for even more rapid growth.

Recent data shows that India’s annual electronics production has surpassed ₹11 lakh crore, approximately $129 billion. With an intermediate goal of reaching $300 billion in electronics production by 2026, the nation has established an ambitious long-term target of achieving $500 billion in domestic electronics output by the fiscal year 2030-31.

Complementary Initiatives Strengthening the Sector

In a parallel development, Sarvam AI, an artificial intelligence startup located in Bengaluru, has been chosen as the pioneering entity to create a homegrown foundational model as part of the IndiaAI Mission. This highlights the government’s holistic approach to fostering technological advancement.

Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association, anticipates strong competition among states to offer attractive incentives for investments under the ECMS. He pointed out the substantial manufacturing base of the mobile phone sector, which is close to $62 billion, and predicted that the ECMS will expand this expansion to the ecosystem of components and sub-assemblies.

Mohindroo emphasized that effective integration with global value chains (GVCs) is crucial for achieving scale and enhancing competitiveness. Acknowledging its significance, Ashok Chandak, who heads both SEMI India and IESA, praised the ECMS for its potential to bolster India’s manufacturing and product innovation sectors, emphasizing its synergistic relationship with the India Semiconductor Mission. He noted ongoing efforts to attract global players through MoUs and SEMI Global networks.

Targeted Incentives for Various Component Categories

Under the ECMS, display and camera module sub-assemblies with investments of ₹250 crore are eligible for turnover-linked incentives. To be eligible for these incentives in the bare components category, investments must fall within the range of ₹50 crore to ₹500 crore, with the specific amount varying based on the type of component. Selected advanced bare components, requiring investments between ₹250 crore and ₹1,000 crore, will receive a 25% capex incentive in addition to turnover-linked incentives. Capital expenditure for supply chain and capital equipment investments, with a minimum of ₹10 crore, will be eligible for a 25% incentive.

Final Thoughts:

An important step toward expanding electronics manufacturing in India was the introduction of the Electronics Components Manufacturing Scheme. By offering a mix of incentives and prioritizing quality and design, the scheme aims to attract significant investment, create jobs, and elevate India’s global position. The timing, amidst global shifts, enhances its potential for transformative growth, building on existing momentum through collaborative efforts.

 

 

 

 

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Nextiva is hiring 150 professionals in India as part of its global expansion with the Bengaluru hub.

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Foxconn Plans 300-Acre Hub in North India
Economy, Markets - April 17, 2025

Foxconn Plans 300-Acre Hub in North India

Foxconn Plans 300-Acre Hub in North India.

 

Apple supplier Foxconn plans to establish a massive production facility in Uttar Pradesh, potentially surpassing its Bengaluru plant in scale, as part of its strategic push to diversify supply chains and reduce dependence on China.

Foxconn’s Shift North: Manufacturing Moves to Uttar Pradesh

In a significant boost to India’s electronics manufacturing ambitions, Taiwanese electronics giant Foxconn—the world’s largest contract electronics manufacturer and Apple’s top supplier—reportedly plans to establish its first plant in North India, along the Yamuna Expressway in Uttar Pradesh. The proposed facility, which is spread across 300 acres, may surpass the scale of Foxconn’s existing unit in Bengaluru, indicating a substantial investment and commitment to India’s manufacturing ecosystem.
The final output of the proposed plant is still under discussion, with the company and the Uttar Pradesh government negotiating details regarding product lines, incentives, and timelines. However, industry insiders suggest the facility may cater to both consumer electronics and electric components for Apple and other global clients.

Strategic Diversification: Reducing Dependency on China

Foxconn’s Uttar Pradesh move is part of a broader global strategy by both Foxconn and Apple to diversify manufacturing away from China amid rising geopolitical tensions, trade tariffs, and labour-related disruptions. With the United States imposing higher tariffs on Chinese goods and encouraging American firms to decouple from China, global tech giants actively seek alternate manufacturing bases.
India has become a top destination with its large workforce, improving infrastructure, and favourable government policies under the Production Linked Incentive (PLI) scheme. Foxconn’s expanding footprint in the country reflects its belief in India’s ability to establish itself as a dependable electronics hub.

Yamuna Expressway: A New Industrial Corridor

The decision to choose the Yamuna Expressway Industrial Development Authority (YEIDA) region is based on strategic considerations. Located near Jewar Airport and well-connected to Delhi-NCR, the area is fast emerging as a new industrial and electronics manufacturing corridor. With over 1,200 acres allocated for electronics, EVs, and aerospace industries, the region offers logistical advantages and policy support from the Uttar Pradesh government.
The state government, led by Chief Minister Yogi Adityanath, has rolled out a red carpet for global investors, offering subsidies on land, capital investment, electricity, and single-window clearances. If Foxconn proceeds with the plan, it will become one of the largest anchor investors in the region, potentially catalyzing further investments in component manufacturing and ancillary units.

“Boosting Jobs Through Make in India”

The move aligns with the Indian government’s “Make in India” vision and the broader ambition to turn India into a global manufacturing hub. A large-scale Foxconn facility could generate thousands of direct and indirect jobs, particularly in electronics assembly, supply chain logistics, packaging, and security services.
Depending on its scale of operations, the facility could employ 25,000 to 50,000 people over the next few years. This would uplift the regional economy and help curb migration by creating local employment opportunities in semi-urban and rural Uttar Pradesh.

Foxconn’s Growing Indian Footprint

Foxconn already operates several plants in India, including a major facility in Tamil Nadu that manufactures iPhones and another in Karnataka’s Bengaluru, where Apple plans to scale up local production. The company has recently pledged investments worth over $1.5 billion in India and signed multiple MoUs with state governments.
The potential Uttar Pradesh plant could complement these efforts by serving as a central northern manufacturing node, possibly producing iPhone components, consumer electronics, semiconductors, or even EV parts—given Foxconn’s increasing involvement in the electric mobility sector.

Awaiting Final Confirmation

While the plans are promising, official confirmation from Foxconn and the Uttar Pradesh government is still awaited. Final approvals, land acquisition formalities, and incentives are expected to be completed in the coming months. This plant would be a landmark development for Uttar Pradesh and India’s electronics supply chain if realized.
Industry observers are closely watching the negotiations, given the significance of this investment in reshaping India’s role in the global electronics manufacturing map.

 

 

 

 

 

 

 

 

 

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The Impact of Vijay Shekhar Sharma’s Rs 492 Crore Surrender on Paytm Investors.

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