MUMBAI: Shares of telecom equipment makers<\/a> like Dixon Technologies, D-Link India<\/a>, ITI, Sterling Technologies, Tejas Network<\/a> and Shyam Telecom surged on Wednesday after the Union Cabinet<\/a> cleared the Production Linked Incentives (PLIs) programme for the segment in an attempt to boost local manufacturing.
The PLI<\/a> scheme for the sector is worth Rs 12,195 crore over 5 years, which could lead to enhanced production of more than Rs 2.4 lakh crore with exports of around Rs 2 Lakh crore.
“A production opportunity of over Rs 2.4 trillion over five years is sizable and most of the telecom equipment manufacturers may like to exploit this opportunity” said Binod Modi, head – strategy, Reliance Securities. “Global companies like Samsung<\/a>, Ericsson<\/a>, LG, Nokia among others might be showing interests, but domestically companies like Dixon Technology, GTL Infra, ITI and Shyam Telecom are expected to benefit.”
While D-Link India share price rallied 18% on Wednesday, Sterlite Technologies<\/a> and ITI stock gained 11% each. Shares of Tejas Network rose 10% while Dixon Technologies gained nearly 4%.
MUMBAI: Shares of telecom equipment makers<\/a> like Dixon Technologies, D-Link India<\/a>, ITI, Sterling Technologies, Tejas Network<\/a> and Shyam Telecom surged on Wednesday after the Union Cabinet<\/a> cleared the Production Linked Incentives (PLIs) programme for the segment in an attempt to boost local manufacturing.
The PLI<\/a> scheme for the sector is worth Rs 12,195 crore over 5 years, which could lead to enhanced production of more than Rs 2.4 lakh crore with exports of around Rs 2 Lakh crore.
“A production opportunity of over Rs 2.4 trillion over five years is sizable and most of the telecom equipment manufacturers may like to exploit this opportunity” said Binod Modi, head – strategy, Reliance Securities. “Global companies like Samsung<\/a>, Ericsson<\/a>, LG, Nokia among others might be showing interests, but domestically companies like Dixon Technology, GTL Infra, ITI and Shyam Telecom are expected to benefit.”
While D-Link India share price rallied 18% on Wednesday, Sterlite Technologies<\/a> and ITI stock gained 11% each. Shares of Tejas Network rose 10% while Dixon Technologies gained nearly 4%.
D-Link designs and manufactures switches, routers, modems, voice over Internet protocol products, ethernet cards, and broadband equipment. State-owned ITI makes telecommunications products, including electronic switching equipment, telephones and related devices, digital radio, open wire bags, optical fiber equipment and digital exchanges.
Dixon, India’s largest electronics manufacturing services (EMS) player, has gained 117% since 6 October last year after the government approved one of its two applications for the PLI scheme for large-scale mobile manufacturing.
“The scheme will provide huge opportunities for the domestic players who are into telecom equipment business,” said Sanjiv Bhasin, director, IIFL Securities. “The government has set its priorities right and now it's for the domestic companies to deliver.”
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