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Time of India
3 days ago
- Business
- Time of India
Dixon's Dragon Deal Sparks JV Current in India
Several electronics contract manufacturers in India are plotting partnerships with Chinese companies, enthused by the Centre's nod to a joint venture between Dixon Technologies and Chinese original design manufacturer (ODM) Longcheer Intelligence . Dixon, the top homegrown electronics contract manufacturer, said late Thursday that it has secured Ministry of Electronics and Information Technology (MeitY) approval to form a joint venture with Longcheer which will be 74% owned by the Indian company and 26% by the Chinese partner. Explore courses from Top Institutes in Please select course: Select a Course Category Encouraged by the development, other Indian companies such as Epack Durable, PG Electroplast, Amber Enterprises, and Karbonn Mobile are looking to proceed with plans to ink similar JVs with Chinese firms, industry executives said. For the domestic electronics industry, the Dixon approval signals a softening of the Modi government's stance on allowing Chinese firms to join the burgeoning manufacturing footprint in the country. The industry was closely following the fate of Dixon's JV proposal. Currently any application with a Chinese entity needs multi-ministry government approval under the Press Note 3 (PN3) norms. 'The industry needs 1-2 cases of Chinese joint venture approvals before forming similar partnerships with Chinese companies,' said the chief executive of a leading contract manufacturer. 'Dixon's approval will now help everyone. Chinese companies are more comfortable with joint ventures than just technology licensing.' Mobile phone manufacturer Karbonn is finalising a JV with a Chinese company for component manufacturing, on the lines of the Dixon proposal where the foreign partner will own 26%, a senior official said. Contract AC and TV manufacturer PG Electroplast managing director (operations) Vikas Gupta said the Dixon approval is a positive for the industry since the Indian electronics industry needs technology and support from Chinese companies. He said the company will now explore equity partnership with Chinese firms for the electronics component manufacturing scheme . Meanwhile, Dixon is awaiting government approvals for two other Chinese JV proposals—with HKC to manufacture display modules, and smartphone brand Vivo for assembling handsets. According to Dixon, the MeitY approval was issued under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the government's Press Note 3, 2020, which states that an entity of a country sharing land border with India, can invest only after receiving PN3 approval from the government. The proposal was approved on July 23, it said. ET reported in its July 21 edition that the Centre is likely to support Chinese investments in the electronics sector, only through JV agreements, after the industry's request to ease the process. The government has however pushed for technology transfers instead of only setting up assembly units. Niti Aayog has also recently proposed easing curbs on Chinese investments in India. The government's move also comes close on the heels of external affairs minister S Jaishankar's meeting with his Chinese counterpart Wang Yi in Beijing. Post the meeting, India, for the first time in five years, resumed issuing tourist visas to Chinese citizens from July 24. India had imposed the curbs following the Galwan valley clashes in mid-2020 and issued PN3 norms that require multi-department approvals for investments from businesses and entrepreneurs based in land bordering countries such as China. This forced Chinese compressor maker Highly Group and Voltas to scrap a JV agreement in which the Chinese partner was to hold 60% two years ago as the proposal did not get the government's PN 3 approval. Renewed attempts by both companies to form the JV could not materialise in the absence of clear signals from the government though the talks can be revived again, an industry official said. Indian companies have been pushing for a review of trade ties with China, particularly concerning PN3. Joint ventures with Chinese companies are crucial for the success of the recently announced Rs 22,000-crore electronics component manufacturing scheme, experts said. The government is expected to extend the July 31 deadline to apply under the scheme as potential participants race to ink JV pacts to acquire expertise in manufacturing electronics components and sub-assemblies. "We need some hand holding from the Chinese companies otherwise Indian electronic contract manufacturing cannot move up the value chain. We would now explore opportunities," said Ajay DD Singhania, CEO at appliance contract manufacturer Epack Durable. With India seeking to deepen and expand the supply chain through the electronics component manufacturing scheme, Indian companies need expertise from Chinese entities that currently make the bulk of the components supplied globally.
Economic Times
3 days ago
- Business
- Economic Times
Dixon's JV with Chinese firm gets govt nod, other Indian companies may follow
Agencies Dixon has secured MeitY approval to form a joint venture with Longcheer which will be 74% owned by the Indian company and 26% by the Chinese partner. Kolkata | New Delhi: Several electronics contract manufacturers in India are plotting partnerships with Chinese companies, enthused by the Centre's nod to a joint venture between Dixon Technologies and Chinese original design manufacturer (ODM) Longcheer the top homegrown electronics contract manufacturer, said late Thursday that it has secured Ministry of Electronics and Information Technology (MeitY) approval to form a joint venture with Longcheer which will be 74% owned by the Indian company and 26% by the Chinese partner. Encouraged by the development, other Indian companies such as Epack Durable, PG Electroplast, Amber Enterprises, and Karbonn Mobile are looking to proceed with plans to ink similar JVs with Chinese firms, industry executives the domestic electronics industry, the Dixon approval signals a softening of the Modi government's stance on allowing Chinese firms to join the burgeoning manufacturing footprint in the country. The industry was closely following the fate of Dixon's JV proposal. More Cos to Explore Equity Partnerships Currently any application with a Chinese entity needs multi-ministry government approval under the Press Note 3 (PN3) norms. 'The industry needs 1-2 cases of Chinese joint venture approvals before forming similar partnerships with Chinese companies,' said the chief executive of a leading contract manufacturer. 'Dixon's approval will now help everyone. Chinese companies are more comfortable with joint ventures than just technology licensing.'Mobile phone manufacturer Karbonn is finalising a JV with a Chinese company for component manufacturing, on the lines of the Dixon proposal where the foreign partner will own 26%, a senior official AC and TV manufacturer PG Electroplast managing director (operations) Vikas Gupta said the Dixon approval is a positive for the industry since the Indian electronics industry needs technology and support from Chinese companies. He said the company will now explore equity partnership with Chinese firms for the electronics component manufacturing scheme. Meanwhile, Dixon is awaiting government approvals for two other Chinese JV proposals—with HKC to manufacture display modules, and smartphone brand Vivo for assembling handsets. According to Dixon, the MeitY approval was issued under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the government's Press Note 3, 2020, which states that an entity of a country sharing land border with India, can invest only after receiving PN3 approval from the government. The proposal was approved on July 23, it said. ET reported in its July 21 edition that the Centre is likely to support Chinese investments in the electronics sector, only through JV agreements, after the industry's request to ease the process. The government has however pushed for technology transfers instead of only setting up assembly units. Niti Aayog has also recently proposed easing curbs on Chinese investments in India. The government's move also comes close on the heels of external affairs minister S Jaishankar's meeting with his Chinese counterpart Wang Yi in Beijing. Post the meeting, India, for the first time in five years, resumed issuing tourist visas to Chinese citizens from July had imposed the curbs following the Galwan valley clashes in mid-2020 and issued PN3 norms that require multi-department approvals for investments from businesses and entrepreneurs based in land bordering countries such as forced Chinese compressor maker Highly Group and Voltas to scrap a JV agreement in which the Chinese partner was to hold 60% two years ago as the proposal did not get the government's PN 3 approval. Renewed attempts by both companies to form the JV could not materialise in the absence of clear signals from the government though the talks can be revived again, an industry official companies have been pushing for a review of trade ties with China, particularly concerning PN3. Joint ventures with Chinese companies are crucial for the success of the recently announced Rs 22,000-crore electronics component manufacturing scheme, experts said. The government is expected to extend the July 31 deadline to apply under the scheme as potential participants race to ink JV pacts to acquire expertise in manufacturing electronics components and sub-assemblies.
Time of India
3 days ago
- Business
- Time of India
Dixon's JV with Chinese firm gets govt nod, other Indian companies may follow
Kolkata | New Delhi: Several electronics contract manufacturers in India are plotting partnerships with Chinese companies, enthused by the Centre's nod to a joint venture between Dixon Technologies and Chinese original design manufacturer (ODM) Longcheer Intelligence . Dixon, the top homegrown electronics contract manufacturer, said late Thursday that it has secured Ministry of Electronics and Information Technology (MeitY) approval to form a joint venture with Longcheer which will be 74% owned by the Indian company and 26% by the Chinese partner. Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Data Analytics Leadership Technology Public Policy Cybersecurity Digital Marketing Others CXO Healthcare MBA MCA Degree Product Management Data Science others Data Science Artificial Intelligence Project Management PGDM Finance Management Design Thinking healthcare Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details Encouraged by the development, other Indian companies such as Epack Durable, PG Electroplast , Amber Enterprises , and Karbonn Mobile are looking to proceed with plans to ink similar JVs with Chinese firms, industry executives said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo For the domestic electronics industry, the Dixon approval signals a softening of the Modi government's stance on allowing Chinese firms to join the burgeoning manufacturing footprint in the country. The industry was closely following the fate of Dixon's JV proposal. Live Events More Cos to Explore Equity Partnerships Currently any application with a Chinese entity needs multi-ministry government approval under the Press Note 3 (PN3) norms. 'The industry needs 1-2 cases of Chinese joint venture approvals before forming similar partnerships with Chinese companies,' said the chief executive of a leading contract manufacturer. 'Dixon's approval will now help everyone. Chinese companies are more comfortable with joint ventures than just technology licensing.' Mobile phone manufacturer Karbonn is finalising a JV with a Chinese company for component manufacturing, on the lines of the Dixon proposal where the foreign partner will own 26%, a senior official said. Contract AC and TV manufacturer PG Electroplast managing director (operations) Vikas Gupta said the Dixon approval is a positive for the industry since the Indian electronics industry needs technology and support from Chinese companies. He said the company will now explore equity partnership with Chinese firms for the electronics component manufacturing scheme. Meanwhile, Dixon is awaiting government approvals for two other Chinese JV proposals—with HKC to manufacture display modules, and smartphone brand Vivo for assembling handsets. According to Dixon, the MeitY approval was issued under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the government's Press Note 3, 2020, which states that an entity of a country sharing land border with India, can invest only after receiving PN3 approval from the government. The proposal was approved on July 23, it said. ET reported in its July 21 edition that the Centre is likely to support Chinese investments in the electronics sector, only through JV agreements, after the industry's request to ease the process. The government has however pushed for technology transfers instead of only setting up assembly units. Niti Aayog has also recently proposed easing curbs on Chinese investments in India . The government's move also comes close on the heels of external affairs minister S Jaishankar's meeting with his Chinese counterpart Wang Yi in Beijing. Post the meeting, India, for the first time in five years, resumed issuing tourist visas to Chinese citizens from July had imposed the curbs following the Galwan valley clashes in mid-2020 and issued PN3 norms that require multi-department approvals for investments from businesses and entrepreneurs based in land bordering countries such as China. This forced Chinese compressor maker Highly Group and Voltas to scrap a JV agreement in which the Chinese partner was to hold 60% two years ago as the proposal did not get the government's PN 3 approval. Renewed attempts by both companies to form the JV could not materialise in the absence of clear signals from the government though the talks can be revived again, an industry official said. Indian companies have been pushing for a review of trade ties with China, particularly concerning PN3. Joint ventures with Chinese companies are crucial for the success of the recently announced Rs 22,000-crore electronics component manufacturing scheme, experts said. The government is expected to extend the July 31 deadline to apply under the scheme as potential participants race to ink JV pacts to acquire expertise in manufacturing electronics components and sub-assemblies.
Time of India
4 days ago
- Business
- Time of India
Microcap stocks defy market: 50 stocks rise over 200% amid selloff; analysts caution over poor earnings, bubble risk
Even as benchmark indices have struggled since the September 2024 selloff, a clutch of little-known microcap and penny stocks have delivered blockbuster returns, with at least 50 companies gaining over 200%—and some surging by as much as 5,500%, according to an Economic Times report. Leading the list is RRP Semiconductor, a Maharashtra-based firm whose shares skyrocketed from Rs 50.6 to Rs 2,833, translating into a 5,500% jump in under 11 months, according to an ET report. The company's market capitalisation rose from Rs 68.9 crore to Rs 3,858.5 crore, despite posting only Rs 32 crore in revenue and Rs 8.5 crore in net profit for FY25. Penny frenzy amid broader correction The meteoric rise in these counters comes at a time when broader indices have seen a correction. Since September 27, 2024, the Nifty Smallcap 250 and Nifty Midcap 150 indices are down 3% and 1.8%, respectively, while the Nifty Microcap 250 has fallen 4.8%. Among other top gainers are Elitecon International, Sumeet Industries, Vega Jewellers, Midwest Gold, Kothari Industrial Corporation, Arunis Abode, and Rajasthan Tube Manufacturing, with returns ranging from 1,000% to 4,800%. Top Performing Microcap & Penny Stocks Since Sept 27, 2024 (Figures in Rs crore) Company CMP (Rs) Current MCap (Rs cr) % Chg since Sept 27, '24 FY25 Revenue (Rs cr) FY25 PAT (Rs cr) RRP Semiconductor 2,833.0 3,858 5,500.9% 32.0 8.5 Elitecon International 144.7 23,130 4,723.0% 551.4 69.6 Sumeet Industries 125.5 66 2,977.0% 1,195.0 170.3 Vega Jewellers 145.2 138 2,868.3% 10.6 0.2 Midwest Gold 1,264.3 413 1,699.4% 1.1 -5.6 Kothari Industrial Corporation 418.2 3,920 1,443.7% 87.6 -16.2 Arunis Abode 464.2 139 1,229.9% 0.5 -0.2 Rajasthan Tube Mfg Co 42.5 192 1,059.1% 56.4 0.5 Stellant Securities (India) 367.9 27 757.0% 1.9 1.3 IMEC Services 149.6 28 719.5% 28.8 25.4 Source: ET report However, ET reported that 12 of the 50 stocks had reported net losses in FY25, and 19 had revenues below Rs 10 crore—raising concerns over fundamental weakness despite massive market cap expansion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Studio & 1 BHK at ACE Nest – Book with ₹5 Lacs Only! Ace Noida Book Now Undo 'Mini-bubble' fears as Sebi caution still looms Experts are warning retail investors to tread cautiously. 'One could say that it is a mini-bubble in a group of penny stocks, and one should be extremely careful not to get trapped with their core investment corpus in such stocks,' said Vikas Gupta, CEO, OmniScience Capital. He noted that many traders are lured in by rumours of asset monetisation or future business potential, often unsupported by operational strength. 'Sebi had cautioned investors last year about price manipulation in SME and microcap counters, and those risks haven't gone away,' said Apurva Sheth, Head of Research, Samco Securities. Sheth added that only 8 of the 50 stocks had a PE ratio between 0–50 and market cap-to-sales ratio below five—basic screens to assess a stock's fundamental viability. 'Most of the stocks from SME or microcap space have low corporate governance standards and no institutional ownership, thus investors would be better off staying away from them,' he said. Gupta echoed the caution 'Yes, there can be exceptions, but are you expert enough to understand the exceptions? If not, stay away from such stocks.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
5 days ago
- Business
- Economic Times
penny stocks: Small stocks, big surge: Over 50 microcaps soar up to 5,500% despite market turmoil
ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Mumbai: The sell-off in equities since late September last year disrupted the widespread bullish sentiment that had existed till then. Yet, that has not stopped some stocks from soaring into the stratosphere since. At least 50 little-known smallcap, microcap, and penny stocks have returned between 200% and an eye-popping 5,500% since September 27 when the stock market selloffs began, ignoring the sharp swings in sentiment between risk-on and risk-off in the of these 50 top performers, 12 companies made losses at the end of FY25, while 19 have revenues of less than ₹10 crore, which is modest compared to their market value. The topper in the list is Maharashtra-based RRP Semiconductor , whose shares have shot up about 5,500% from ₹50.6 to ₹2,833. Its market capitalisation zoomed to ₹3,858.5 crore from ₹68.9 crore in September. The company posted a revenue of ₹32 crore and net profit of ₹8.5 crore in of other companies that saw outsized gains in this period are Elitecon International Kothari Industrial Corporation , Arunis Abode Rajasthan Tube Manufacturing. These stocks jumped between 1,000% and 4,800%. The Midcap 150 and Smallcap 250 indices are down 1.8% and 3%, respectively, while the Microcap 250 index has shed 4.8% from September 27."One could say that it is a mini-bubble in a group of penny stocks and one should be extremely careful not to get trapped with their core investment corpus in such stocks," said Vikas Gupta, CEO at OmniScience Capital. NACL Industries , Kothari Industrial Corporation, Midwest Gold, Gujarat Natural Resources, Naturite Agro Products Relic Technologies , Jattashankar Industries, Lyons Corporate Market, Darjeeling Ropeway Company , Sparkle Gold Rock and Arunis Abode, which have seen their shares zoom up between 200% and 1,700% in the past 11 months, made losses in FY25. "Most people buy these stocks as there is expectation of large business sometime in future or unlocking of some "hidden" or underutilized asset, driving the prices upwards," said Gupta. "Many traders buy on rumour in the hope of making money when the rumour is declared as an actual announcement."Out of the 50 shares that have moved up more than 200% since September, only 8 companies are the ones with a market cap to sales below five times and whose price to earnings (PE) ratio is between 0 and 50, which is a basic filter indicating some fundamental soundness, said Apurva Sheth, head of research at Samco exuberance in the microcap and penny stock space is, however, much more moderate than it was before Sebi cautioned investors against investing in the shares of unknown companies, highlighting instances where certain small and medium enterprises (SMEs) engaged in price manipulation by creating an unrealistic picture of their operations.'Most of the stocks from SME or microcap space have lower corporate governance standards and don't have institutional holding, thus investors would be better off staying away from them,' said Sheth. Gupta also advises investors to stay away from microcaps and penny stock space though there could be high-growth stories in their midst.'Of course, there can be exceptions; but are you expert enough to understand the exceptions? If not, stay away from such stocks,' said Gupta.
