Latest news with #ECMS
Finextra
4 days ago
- Business
- Finextra
Eurosystem launches single collateral management system
The Eurosystem successfully launched its new, unified Eurosystem Collateral Management System (ECMS) on 16 June 2025 after the migration to the new set-up was completed over the weekend of 13-15 June. 0 The ECMS thus becomes the fourth TARGET Service in operation, advancing the Eurosystem's vision for a unified, efficient and innovative European financial framework. The ECMS manages assets used as collateral in Eurosystem credit operations. Together with the other TARGET Services, the ECMS will ensure that cash, securities and collateral can flow freely across Europe. The software and the environment for the new system were delivered by the Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d'Italia - the four national central banks that act as service providers for TARGET Services (T2, TARGET2-Securities and TIPS). The successful launch of the ECMS reflects the joint efforts and commitment of all euro area central banks in supporting their market participants (counterparties, central securities depositories and triparty agents) throughout this project. Thanks to close cooperation and extensive activities such as testing and migration rehearsals, all parties have ensured that participants can fully leverage the benefits of the new platform from day one. With the ECMS going live, the Eurosystem now offers a single system that harmonises the management of collateral for Eurosystem credit operations. The ECMS replaces the individual national collateral management systems previously operated by the 20 euro area national central banks. Furthermore, the ECMS will facilitate the smooth flow of cash, securities and collateral within the euro area by enhancing the liquidity management features of the TARGET Services.
Hans India
06-06-2025
- Business
- Hans India
AP showcases investment potential in electronics manufacturing
Tirupati: Andhra Pradesh is fast emerging as a prime destination for investments and industrial growth, especially in the electronics manufacturing sector. The Electronics Component Manufacturing Scheme (ECMS) and Andhra Pradesh Electronics Component Manufacturing Policy draft workshop in Tirupati held on Thursday was aimed at giving a further boost to this sector. The one-day workshop was jointly organised by the IT, Electronics & Communications (ITE&C) Department, AP Economic Development Board, and the India Cellular and Electronics Association. The workshop saw participation from key dignitaries including Sushil Pal, Joint Secretary of the Ministry of Electronics and IT, who stated that the Government of India is actively promoting electronics component manufacturing through Production Linked Incentives (PLI) and other incentives. He lauded AP's proactive efforts and underlined the strong demand for electronics components in the market. Speaking at the event, Secretary of ITE&C Bhaskar Katamneni highlighted that the state government under the leadership of the Chief Minister is committed not only to 'Ease of Doing Business' but also to 'Speed of Doing Business.' He emphasised the abundant opportunities in the state for setting up industries and expressed confidence that Andhra Pradesh is crafting a more competitive and investor-friendly electronics policy compared to the Central Government's framework. Bhaskar revealed that the state is aiming to localise production of electronic components, which are currently being imported, and is formulating a forward-looking policy to attract manufacturers. Plans are already underway to establish 25 percent of these units in the southern Rayalaseema region. Tirupati EMC-2 cluster and the Kopparthy EMC are being positioned as key hubs for this expansion. Highlighting the state's industrial readiness, he mentioned Sri City, where more than 200 industries are operational and contributing to significant employment. Andhra Pradesh boasts superior infrastructure with robust road, rail, airport, and port connectivity. Reaffirming the state's commitment to transparency and technological governance, he said Andhra Pradesh is leveraging AI, IoT, drones, and WhatsApp governance for effective administration. As the state works toward its Vision 2047 goal of becoming a $2.4 trillion economy, it aims to harness not just IT but a range of industrial sectors to meet national targets.
Time of India
04-06-2025
- Business
- Time of India
Tecno India says building components ecosystem with Dixon, to expand R&D focus
NEW DELHI: Transsion Group 's Tecno said domestic manufacturing of electronic components will support innovation in the country and contribute to the brand's long-term success in India. 'The ( electronic components manufacturing ) scheme supports local innovation, which is critical to our long-term success in India. We plan to continue to expand our local research & development and production capabilities to tailor our products to the needs of Indian consumers,' Arijeet Talapatra, chief executive officer (CEO), Tecno India , told ETTelecom. He said that Tecno and homegrown contract electronics manufacturer, Dixon Technologies , are jointly working to build a domestic electronics component ecosystem in India, supported by the ECMS 2.0 scheme. Atul Lall, MD of Dixon, said during the company's most recent earnings call that Transsion and Dixon have a joint venture (JV) in the electronic components domain to deepen manufacturing initiatives domestically. The Central government, earlier this year, notified the electronics components manufacturing scheme (ECMS) with an outlay of over ₹23,000-crore, which aims to drive the local manufacturing of sub-assemblies, bare components, and selected bare components such as display and camera sub-assemblies, passive components, multi-layered printed circuit boards (PCBs), Li-ion cells, and others. Ashwini Vaishnaw, union minister for electronics & IT, told news agency PTI in a recent interview that the government has received 70 applications for this scheme, with a majority of applicants from the small and medium enterprises sector. Talapatra further said that Tecno is actively pursuing to develop localised artificial intelligence (AI) capabilities and collaborating to improve the design of its smartphones to differentiate against rivals. It has established a new R&D centre in Noida with up to 60 engineers, which will drive the development of new AI features and regional product design for India, Bangladesh, and Nepal. According to the executive, the smartphone maker expects to grow at 200% year-on-year in the ₹15,000 to ₹20,000 5G smartphone segment , led by the rural markets, as demand in the urban regions starts maturing. 'We are strategically intensifying our focus on the ₹15,000 to ₹20,000 smartphone segment, which is currently the fastest-growing category in India, to cater to aspirational consumers seeking premium features at accessible prices,' the chief executive said. 'The demand for affordable yet feature-rich 5G phones is also growing rapidly in tier-2 and tier-3 cities,' he added. Transssion operates three brands in India – iTel, for budget-grade feature phones and smartphones; Tecno, for mid-range devices; and Infinix, for the premium, or flagship segment. Tecno India, according to the top executive, is focusing on a balanced growth strategy. 'We are emphasising profitability and volume at the same time. Backed by a strong global supply chain, we are aiming at further cost efficiency, and we will launch smartphones across all price points, including a ₹80,000 Tecno device,' he said.
Indian Express
02-06-2025
- Business
- Indian Express
India's PLI scheme for electronics components: Is it a new growth chapter for EMS stocks?
India's electronics manufacturing sector (EMS) is entering the next phase of growth. Following the success of the 2020 Product Linked Incentive (PLI) scheme for electronics, the government is focusing on developing the electronics supply chain. On March 28, the Union Cabinet approved a Rs 23,000 crore PLI scheme for electronics components manufacturing. Several EMS players that experienced exponential growth over the past five years are now looking at backward integration strategies to sustain their high valuations. Among them are Dixon Technologies and Kaynes Technology India. However, the two stocks fell 28% and 47%, respectively, in the first three months of 2025 as a temporary slowdown in revenue and earnings made investors cautious. These stocks were trading at over 200x price-to-earnings (P/E) ratio as of January 3, 2025. Such stretched valuations prompted several analysts to downgrade their ratings despite the firms' strong revenue and earnings growth. Several developments unfolded during the fourth quarter of FY25. Investors and industry were anticipating the launch of a new PLI scheme or high-budget outlays for electronics components and semiconductors. However, uncertainty over the rollout of the new PLI scheme, combined with the existing electronics PLI nearing the end and no signs of any extension, led to investor unease. Meanwhile, Dixon and Kaynes started investing in manufacturing capacities to build electronics components. All these factors pulled down EMS stocks. The situation improved after the March 28 approval of the new Electronics Components Manufacturing Scheme (ECMS). However, market sentiment remained cautious due to concerns around potential retaliatory tariffs from the US under President Donald Trump. Hence, when retaliatory tariffs were paused for 90 days on April 8, the share price of Dixon and Kaynes jumped 32% in two weeks. The 2020 PLI for large-scale electronics manufacturing made India the second-largest mobile phone manufacturer in the world in FY 2025. According to a PIB press release on March 26, the scheme attracted a cumulative investment of Rs 10,905 crore, a cumulative production of Rs 7.16 lakh crore, and cumulative exports of Rs 3.9 lakh crore as of February 2025. Apple's contract manufacturers (Foxconn, Tata Electronics, and Pegatron), Samsung, and Dixon were the biggest beneficiaries as they opened facilities and produced Made in India mobile phones. The 5-year PLI scheme helped them set up manufacturing capabilities. While the scheme will end next year, PLI incentives account for a small portion of the profits. Despite domestic electronics production jumping from Rs 5.54 lakh crore to Rs 9.52 lakh crore in FY21-FY25, India does not make phones from scratch. Most components are imported from the US and other countries, assembled in India's over 300 manufacturing units, and used domestically and for exports. Hence, the materials cost of Dixon and Kaynes accounted for 89% and 70% of their revenue in FY25. However, these companies grew exponentially on the back of strong volumes. With the sector maturing, they ought to look for the next growth driver, and a promising alternative is electronics components, which they import. The Electronics Industries Association of India (ELCINA) highlighted that non-semiconductor electronics components constitute 60% of the total cost of finished products. The new ECMS PLI scheme will give EMS companies the boost they need to build electronics components in India and reduce their reliance on imports. The new scheme will give incentives based on turnover, investments in factories, and job creation. Like the 2020 PLI, the 2025 ECMS PLI will be open to both domestic and international stakeholders and is expected to attract Rs 59,350 crore in investment, generate Rs 4.56 lakh crore in production, and create 91,600 direct jobs. While it is too early to gauge the value the ECMS PLI will bring to India's electronics manufacturing sector, we can keep a watch on the possible beneficiaries. Apple's contractors, Samsung, and Dixon got a boost from the 2020 PLI, and now they are self-sufficient to make smartphones profitably and stay competitive. Apple is at the forefront of building a supply chain in India. Its manufacturing contractor, Foxconn, has announced plans to invest $1.5 billion in a display module plant in India. Meanwhile, Dixon is building a display module plant for mobile phones, laptops, and TVs it manufactures, and later expand to cater to external market requirements. It is also looking to apply for the new PLI scheme to manufacture camera modules, mechanical enclosures, and lithium-ion batteries, and use them in the electronics it makes for end clients. Dixon Technologies has been rapidly growing in the smartphone space, with its mobile and other EMS divisions' revenue up 203% to Rs 33,043 crore in FY25. It now accounts for 85% of the company's revenue. Dixon manufactures smartphones for Motorola, Xiaomi, Oppo, Realme, Vivo, Transsion, and Nothing. According to the company's CEO and Managing Director, Atul Lall, Dixon plans to double smartphone production from 28.3 million in FY25 to 40-44 million in FY26 and 60-65 million by FY27, and export a significant portion to North America. To achieve this target, the company is constructing a one-million-square-foot facility in Noida. With the 2020 PLI scheme coming to an end, Dixon will lose production incentives and could see a temporary slowdown in margins. It is likely to make up for it by taking a higher share of customers' wallets, new customer additions, and margin expansion through operational efficiencies and backward integration. Dixon has ventured into laptop manufacturing for HP, ASUS, and Lenovo. However, the volumes are yet to pick up, and investors have already priced in high growth. The stock trades at a 116x P/E ratio, which is supported by its high return on equity (ROE) of 33% and a 110% growth in profit. While laptops are a good business, their volumes may not be as high as smartphones. However, electronics components and display modules could help Dixon reduce material costs and supply chain risk. A push to higher margins could bring more upside, but share price growth would be moderate because of stretched valuations. Dixon Technologies Revised Price Target (Rs) Previous Price Target (Rs) Upside Potential from Market Price Rs 14,849 Ratings Nomura 21,202 22,005 42.8% Buy Motilal Oswal 20,500 38.1% Buy CLSA 19,000 28.0% Buy Anand Rathi 18,775 26.4% Buy BNP Paribas 17,910 20.6% Buy Yes Securities 15,741 16,566 6.0% Reduce JM Financial 15,650 16,500 5.4% Hold Source: Brokerage Reports
Hindustan Times
01-06-2025
- Business
- Hindustan Times
UP, Gujarat to offer new incentives for electronics component makers
Uttar Pradesh and Gujarat are set to unveil additional incentive schemes to complement the Centre's electronics components manufacturing programme, as both states compete to attract investors in the burgeoning sector. The moves come as the two states prepare to host major semiconductor facilities, positioning them as emerging hubs for India's electronics manufacturing ambitions. Gujarat's policy is 'under active consideration and will be announced soon,' according to Mona Khandhar, principal secretary in the state's department of science and technology. However, she declined to reveal specifics, citing the policy's pending approval. Uttar Pradesh's 'electronic component promotion policy' is in its final stages of notification and will combine performance-linked incentives with capital subsidies, people aware of the matter told Hindustan Times. The announcements follow similar initiatives by Assam and Tamil Nadu, reflecting a broader state-level push to capitalise on the Centre's ₹22,919-crore Electronics Components Manufacturing Scheme (ECMS). Notified in early May by the Union IT ministry, the ECMS aims to build a robust ecosystem for passive electronic components such as resistors, capacitors and inductors, targeting both global and domestic investments. Active components like chips and transistors fall under the separate India Semiconductor Mission. Also Read: Govt gearing up for 3rd electronics manufacturing cluster in U.P. Both Gujarat and UP are strategically positioned with upcoming semiconductor projects. The Tata Group's fabrication unit in Gujarat is currently under construction, while the HCL-Foxconn OSAT facility near Jewar's Noida International Airport was announced earlier in May. The semiconductor presence provides a crucial advantage, as Assam chief minister Himanta Biswa Sarma explained in a recent interview. The state is pursuing an aggressive top-up scheme to leverage Tata's ecosystem of utilities, services and infrastructure. 'We don't want this ecosystem to serve only semiconductors. It should be leveraged by other sectors too, like electronics component manufacturing,' Sarma told HT.
