Shares of electronics manufacturing services companies surged on July 16 following the Cabinet's approval of a ₹62,500 crore production-linked incentive (PLI) scheme for mobile manufacturing. Cyient DLM led gains with a 7.40% rise to ₹578.35 per share. Dixon Technologies and PG Electroplast also saw their shares climb by up to 5%, while Kaynes Technology and Syrma SGS Technology gained up to 3%, according to livemint.com.
The Cabinet's approval of the mobile PLI 2.0 scheme aims to boost domestic mobile phone production and exports. The announcement triggered buying interest in EMS companies, which are key players in the mobile manufacturing supply chain. The Hindu BusinessLine reported that stocks of Dixon Technologies, Kaynes, Syrma SGS Technology, and Amber Enterprises jumped following the news, reflecting investor optimism about the sector's growth prospects under the new incentive program.
The ₹62,500 crore PLI scheme is designed to enhance India's competitiveness in mobile manufacturing by encouraging investments and production scale-up. This move aligns with the government's broader strategy to strengthen the electronics manufacturing ecosystem and reduce import dependence. The positive market reaction underscores the importance of policy support in driving sectoral growth, with EMS companies positioned to benefit from increased domestic and export demand, as noted by livemint.com and thehindubusinessline.com.
The next key event for the sector will be the rollout of the PLI 2.0 scheme guidelines and application process, which will determine the pace of investment and capacity expansion among EMS firms. Market participants will closely monitor how companies like Dixon Technologies and Cyient DLM capitalize on the incentives to scale operations and capture new business opportunities.