PM Modi’s massive manufacturing push. Five Indian companies ride on wind power; | So Good News

It is to target manufacturers of mobile phones and certain electronic components by offering financial incentives to start or build their existing domestic manufacturing capacity.

The government has approved 32 beneficiaries under the scheme of 10 (five foreign and five domestic companies) for the mobile manufacturing industry.

In the past two years, This program is now implemented by automobile, It was expanded to fourteen sectors, including steel and pharmaceuticals.

Through this scheme, the government aims to promote manufacturing in the country. It aims to create jobs and encourage technological innovation.

The government has set the cost in the Union Budget 2021-22. ₹2 tons. It is expected to create 60 million jobs. ₹Production of 30 tons in the next five years.

Here are five companies riding the wind.

#1 Dixon Technologies

First on the list is Dixon Technologies.

The company’s consumer durables in India; It is engaged in the manufacturing of products in the lighting and mobile phones/smartphones market.

I am planning to invest. ₹2 billion under the PLI scheme for the telecom sector.

The government has approved 32 beneficiaries under the PLI scheme for large-scale electronics manufacturing, of which 10 (five global companies and five domestic companies) have been approved for mobile manufacturing.

Dixon being a local manufacturing company needs to invest. ₹Produce phones worth 500m and up to qualify for smartphone PLI scheme. ₹5 billion in the first year.

The company now receives a qualified environment. ₹530 meters for the first quarter of operation in October-December 2021 as an incentive for incremental sales.

It is the first company to get permission to offer incentives under the PLI scheme. The incentive was approved for Padge Electronics, a wholly owned subsidiary of Dixon Technologies. The company’s manufacturing facilities are in Noida, Uttar Pradesh.

Dixon’s revenue for fiscal 2022 grew 66% YoY. ₹107 bn, but operating profit rose only 32% YoY as raw material costs rose.

#2 Tata Power Solar

Second, On our list is Tata Power Solar.

The company is a subsidiary of Tata Power. Tata Power Solar manufactures solar power modules; Manufactures solar cells and other solar products and provides EPC services for solar projects.

It stands to benefit from the solar PLI scheme. On September 21, 2022, the government approved the second batch of the Production Linked Incentive (PLI) scheme for solar modules.

Benefits under approved scheme ₹The government will provide 195 bn to solar PV producers for five years after commissioning the PV plants.

In five years, Fully and partially integrated solar PV modules are expected to produce about 65,000 MW per year. It’s worth importing. ₹1.4 tons will also be replaced by domestic production of solar panels.

Hopefully this will boost the entire solar sector. It is PV manufacturers; It will be a win-win for solar generation and distribution companies and the government.

Tata Power Solar Systems has commissioned 1.5 GW of utility projects and has an order book of around 3 GW. ₹120 billion by March 31, 2022.

The company recently received a Letter of Award (LoA). ₹6 billion from NHDC for setting up a 125 MW floating solar power project

#3 Adani Infrastructure

Third on our list is Adani Infrastructure.

The company is a subsidiary of Adani Enterprises. It operates and maintains major assets in India’s power sector.

It has built the largest solar power plant at Bitta in Gujarat with a capacity of 40 MW. The project consists of amorphous silicon thin-film modules and is spread over 350 acres of land.

Adani Infrastructure is also a beneficiary of the Solar PLI scheme. The government recently awarded Adani Infrastructure along with other companies for the first phase. ₹45 bn PLI program for High-Efficiency Solar PV Modules.

Quoting Adani Infrastructure’s bid. ₹3.6 bn for the production of polysilicon composites to modules with a capacity of 4,000 MW.

There are four steps in making the module: polysilicon; wafers, cells and modules. Currently, India’s existing 15 GW manufacturing capacity has no polysilicon or wafer manufacturing capacity.

The incentives are expected to add 10 GW of high-efficiency integrated solar PV generation facilities and bring direct investment in the vicinity. ₹172 billion in solar PV production.

#4 Rely on new energy.

Fourth on the list is Reliance New Energy. The company is a wholly owned subsidiary of Reliance Industries.

Reliance New Energy has bid for the Production-Linkage Incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage.

Advanced chemical cells are next-generation cells that can store electrical energy as electrical energy or as chemical energy and convert it back into electrical energy when needed.

Reliance New Energy has signed a similar agreement with Ola Electric and Rajesh Exports. Under the agreement, companies will receive incentives linked to production. ₹181 bn plan.

The company needs to build the factory within two years. After that, the incentive for selling batteries manufactured in India will be provided for a period of five years.

This will be a boon for the EV ecosystem and energy storage market, which will drive EV demand and renewables and attract investment in this sector.

Reliance Industries plans to create or operate at least 100 gigawatts of electricity generation capacity from renewable sources by 2030.

It is developing the Dhirubhai Ambani Green Energy Giga Complex, one of the largest integrated renewable energy generation facilities in the world.

This complex has four Giga plants covering the entire renewable energy sector.

#5 Larsen & Toubro (L&T)

Our last list is L&T.

The company’s infrastructure, Engineering in key sectors such as hydrocarbons and electricity; is a multinational conglomerate primarily involved in providing procurement and construction (EPC) solutions.

L&T has also bid for PLI Scheme for Advanced Chemistry Cell (ACC) battery storage. We are planning to invest in big engineers. ₹200 bn to build its green energy portfolio.

green hydrogen; It is looking to reduce its presence across the fossil fuel space and build new businesses around green energy, evaluating potential in green energy areas including battery storage and offshore wind.

The PLI scheme is a step in that direction.

In addition, It has already commissioned its first hydrogen production plant at the Hazira manufacturing plant in Gujarat.

The facility will produce 45 kg of green hydrogen per day through an alkaline electrolysis process, which will be used for storage and consumption at the company’s local manufacturing complex.

It also plans to focus on emerging business opportunities in offshore wind farms to meet renewable energy needs.

What’s next?

After encouraging local manufacturing, The government is gearing up for another transformational push that is essential to the nation’s Atmanirbhar goals.

Last week, the government unveiled the National Logistics Policy (NLP).

Through NLP, The government aims to reduce logistics costs from 13-14% of the country’s gross domestic product (DGP) to single-digit levels. This is expected to accelerate growth and increase the country’s participation in world trade.

To reduce the cost of logistics in India; It has set three main targets: to raise the level of logistics performance index and thirdly to create a data-driven decision support mechanism for an efficient logistics ecosystem.

How it pans out remains to be seen. Meanwhile, Stay tuned for more updates from here.

Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.

This article has been compiled. Equitymaster.com