Kaynes Tech, Dixon, Syrma Stocks Surge as Government Unveils Massive ₹62,500 Crore Mobile Manufacturing Scheme
The shares of key electrical equipment manufacturers, including Kaynes Tech, Dixon Tech, and Syrma SGS, rose significantly on Monday. This rally followed the government's formal notification of a new Mobile Phone Manufacturing Scheme (MPMS). The scheme carries a budgetary outlay of ₹62,500 crore, aiming to boost domestic value addition and ensure technological sovereignty in India's mobile industry.Key Incentives Under the Mobile Phone Manufacturing Scheme
The Ministry of Electronics and Information Technology (MeitY) notified the MPMS through its press release on Friday. The scheme is designed to support Indian mobile phone brands by providing differentiated incentives ranging from 2.25% to 5% for eligible manufacturers and electronics manufacturing services providers.Indian brands will receive a 5% incentive, coupled with an additional 3% for in-house design and R&D efforts. The MPMS is set to run for five years, spanning from FY27 to FY31. This move underscores the government's commitment to fostering indigenous innovation and intellectual property within the sector.
Government Aims for Global Electronics Hub Status
Union IT Minister Ashwini Vaishnaw stated that the Mobile Phone Manufacturing Scheme will provide a "significant impetus" to developing Indian-owned mobile brands. He emphasized that design, intellectual property, and brand identity must be Indian-owned and competitive in their respective market segments.The government anticipates substantial growth from this initiative. MPMS is expected to generate approximately 60,000 direct jobs. Furthermore, the ministry projects cumulative mobile phone production in India to reach around ₹39 lakh crore during the scheme's tenure, leading to a marked increase in mobile phone exports.
Performance of Electrical Equipment Stocks
The announcement fueled investor confidence in companies like Kaynes Tech and Dixon Tech. Kaynes Tech shares rose over 1% on Monday morning, trading at ₹3,943 apiece. This stock has delivered 110% returns over three years, despite dropping more than 37% in the past year.Dixon Tech experienced a jump of over 1% in early morning trade, reaching ₹15,000 per share. While the company faced negative returns exceeding 12% over the last year, Dixon Tech stock has shown strong long-term performance, jumping over 200% in three years and nearly 290% in five years.
Stock Performance Metrics for Key Manufacturers
Syrma SGS shares also saw a boost, rising more than 2% on Monday morning to trade at ₹1,472 apiece. The stock has delivered significant returns, with a gain of over 100% so far this year and nearly 200% over three years.The MPMS targets two segments: promoting phone manufacturing in India and supporting Indian mobile phone brands. This strategic intervention aims not only to generate economic value but also to strengthen India's standing as a global electronics manufacturing hub, according to the MeitY press release.
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