Recently Production Linked Incentive (PLI) Schemes were approved for AC Manufacturer by Government of India of worth Rs. 6,000 Cr. Now, there are some further details regarding this PLI Scheme to AC Manufacturers, so let’s discuss a bit more about this in the article. Also, we will discuss 2 AC Stocks that could be benefited from this move.
Production Linked Incentive (PLI) Scheme was approved on June 2021 for White Good Manufacturers- Air Conditioners, LED Light Bulbs, Mobile Phones, etc. This Scheme will provide an incentive to the White Good Manufacturers of over Rs. 6,000 Cr. over 5 years from FY21-22 to FY28-29. The application of the window was opened from 15th June 2021 to 15th September 2021. The objective of the scheme is to create complete component ecosystems in India and the country an integral part of the global supply chains, according to the Ministry of Commerce and Industry.
What has happened now?
Here the possible situation which could arise is that PLI Scheme would be provided to the players for finished products only if it manufactures Components in the country too. But as of now, this PLI Scheme is strict only for Component Manufacturing for ACs Manufacturers. If the Component Manufacturing in the country goes well, it could also lead to the profitability of the companies. The current capacity also holds good export traction which can grow healthy be around 4-5 times in the coming years. This could be a piece of good news specifically for Indian ACs Manufacturers. Do follow your due diligence before making any investment decisions.