The Electronics Goods stocks are in focus after Finance Minister Nirmala Sitharaman announced to Boost the Electronics Manufacturing with Duty Adjustments on Interactive Flat Panel Display (IFPD) and Open Cells and other components.
In line with the ‘Make in India’ policy and to address the inverted duty structure, the proposal to increase the Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPD) from 10 percent to 20 percent aims to discourage imports and promote domestic manufacturing.
By raising the custom duty on IFPDs, the government seeks to make locally-produced IFPDs more competitive, encouraging domestic businesses to invest in manufacturing these products in India, thereby boosting local industry and reducing reliance on imports.
In this year’s Budget, to further encourage local manufacturing, the BCD on these parts will now be completely exempt from 2.5 percent to Nil. In the 2023-24 Budget, the government had reduced the Basic Customs Duty (BCD) on parts of Open Cells used in LCD/LED TVs from 5 percent to 2.5 percent.
This exemption will make importing these components more affordable, benefiting manufacturers by reducing costs and boosting the production of LCD/LED TVs in India. It aims to make local production more competitive and support the growth of the domestic electronics industry.
The stocks to watch out
Dixon Technologies (India) Ltd
Dixon Technologies is a leading electronics manufacturing services (EMS) company that provides end-to-end solutions in product design, manufacturing, and distribution, including for LCD/LED TVs.
With the reduction in duties on Open Cells, Dixon will benefit from lower costs in assembling and manufacturing TVs, helping them grow their presence in the Indian electronics market.
PG Electroplast Ltd. is a leading Indian manufacturer of electronic products, specializing in the assembly of LED TVs and other consumer electronics. The company plays a key role in the production of TV panels and Open Cells, which are essential components for LED TV manufacturing.
The above policies will benefit from lower costs in assembling and manufacturing TVs, helping them grow their presence in the Indian electronics market.
Cellecor Gadgets Ltd
Cellecor Gadgets Ltd. is an Indian electronics company that primarily focuses on manufacturing and distributing consumer electronics and gadgets. The company offers a range of products including smartphones, televisions, audio systems, and other smart devices.
With the reduction in duties on Open Cells, cellecor will benefit from lower costs in assembling and manufacturing TVs, helping them grow their presence in the Indian electronics market.
Written by Sridhar J
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