Dixon and 7 Other Companies Set to Benefit After Govt Approves ₹41,863 Cr PLI Scheme for EMS

Synopsis: In a major economic boost, the government greenlights projects worth Rs 41,863 crore, sparking nearly 34,000 new jobs across 22 projects that promise a whopping Rs 2.58 lakh crore in output, unlocking growth, employment, and industrial momentum.

On 2nd January 2026, the Ministry of Electronics and Information Technology (MeitY) approved 22 fresh proposals under the Electronics Components Manufacturing Scheme (ECMS), attracting projected investments of Rs 41,863 crore and anticipated production worth Rs 2.58 lakh crore.

Notable applicants include Dixon, Samsung Display Noida Pvt Ltd, Foxconn’s Yuzhan Technology India Pvt Ltd, Hindalco Industries, Tata Electronics, Amara Raja-ATL, Motherson, and Vital Electronics. The ministry highlighted that these projects will generate 33,791 direct jobs.

India Electronics System Design and Manufacturing Industry 

India’s ESDM market was valued at US$ 36 bn in FY21 and is projected to reach US$ 135 bn by FY26 at a 30.3% CAGR. Indian EMS firms contributed 40% of the total US$14 bn in FY21 and are expected to grow to US$ 81 bn by FY26 (41.1% CAGR). India excels in high-quality design beyond low-cost appeal, with MNCs expanding captive centres. Brands favour EMS for contract manufacturing, but ODM models are gaining traction via collaborative development. EMS players are adding full design services to OEM offerings.

PLI Scheme Investment Boost

The Union Cabinet approved the Production Linked Incentive (PLI) scheme in March 2025 with a Rs 22,919 crore outlay to drive India’s self-reliance in electronics manufacturing and target $500 billion in production by 2030-31. This latest third tranche includes approvals for projects with investments building on prior clearances: 24 earlier applications worth Rs 12,704 crore and 17 from the November second tranche totalling Rs 7,172 crore. Union IT Minister Ashwini Vaishnaw presented approval letters to companies on 2nd January 2026. Key projects span eight states – Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan – with some employment gains also in Telangana.

Strategic Focus

Approved components cover printed circuit boards (PCBs), lithium-ion cells, connectors, camera modules, display modules, aluminium extrusions, and mobile phone sub-assemblies. Projects target 11 segments, including mobile phones, telecom, consumer electronics, strategic electronics, automotive electronics, and IT hardware. Highlights include Motherson’s Tamil Nadu facility creating 5,741 jobs; Amara Raja-ATL’s advanced components plant in Haryana employing 3,550; Tata Electronics’ mobile phone manufacturing in Tamil Nadu adding 1,500 jobs; Vital Electronics’ multi-layer PCB unit in Maharashtra with 110 jobs; Ascent-K Circuits’ advanced PCB plant at YEIDA generating 1,540 jobs; Shogini’s PCB expansion; Samsung’s display module sub-assembly; Yuzhan Technology’s mobile enclosures; Amphenol’s connectors in Karnataka (186 jobs); and CIPSA Tech’s multilayer PCB facility in Andhra Pradesh (100 jobs). Following are listed & Unlisted companies in focus after the new PLI scheme for electronics manufacturing:

Dixon Technologies Ltd

Dixon Technologies (India) Ltd (DTIL), incorporated in 1993, is a leading EMS player in consumer electronics, lighting, appliances, and mobiles via subsidiary Padget Electronics. It has expanded into telecom, hearables, IT hardware, and JVs for backward integration. With 24 facilities across India and PLI approvals in five segments.

Following the approval of the PLI scheme, Dixon Technologies secures clearance for two projects: (1) its 51%-owned JV, Kunshan Q Tech Microelectronics (with a Singapore-based Chinese subsidiary holding the rest), in Uttar Pradesh; and (2) Dixon Electroconnect for optical transceiver manufacturing in Madhya Pradesh.

Scheme Benefits: Manufacturing sub-assemblies and precision components allows Dixon, India’s largest domestic contract manufacturer, to shift from device assembly to higher-margin component production, reducing reliance on Chinese imports. This boosts profit margins and vertically integrates their smartphone/IT hardware supply chain.

Hindalco Industries Ltd

Hindalco Industries, Aditya Birla Group’s metals flagship, is a $28 billion powerhouse—the world’s largest aluminium company by revenue and second-largest copper rods maker (outside China). It spans the value chain: bauxite/alumina/coal mining, captive power, smelting, rolling, extrusions, and foils. With Novelis, it leads in flat-rolled products and aluminium recycling. India’s top copper producer (over 50% of needs), it runs 48 units in 10 countries.

Scheme Benefits: Manufacturing high-quality Aluminum/Copper foils or specialised materials for electronics and EV batteries marks a strategic pivot from commodities to upstream electronics supply. It opens high-growth revenue streams, positioning Hindalco as a key supplier to battery makers and assemblers.

Tata Electronics Ltd

Tata Electronics is an unlisted private company, established in 2020 as a greenfield venture of the Tata Group, operating as a global player in electronics manufacturing. The company specialises in Electronics Manufacturing Services (EMS), Semiconductor Assembly and Test (OSAT), Semiconductor Foundry, and Design Services, serving customers through an integrated value chain.

Scheme Benefits: Manufacturing mechanical enclosures (casings) for high-end smartphones like iPhones supports massive capacity expansion in Apple’s supply chain as a China alternative. This solidifies their leadership in precision components and deepens integration into global value chains.

Samsung Display Noida

Samsung Display Noida Pvt Ltd, an unlisted private company and a subsidiary of Samsung Display, manufactures advanced display panels like OLED and LCD for mobiles and consumer electronics at its Noida facility. 

Scheme Benefits: Expansion of Display Module manufacturing (OLED/LCD) enables local production of smartphones’ costliest component, cutting import costs. It lowers Samsung’s India phone production expenses and allows selling displays to other local manufacturers.

Foxconn’s Yuzhan Technology India Pvt Ltd

Yuzhan Technology India Pvt Ltd, an unlisted private company and a Foxconn Group entity, specialises in precision manufacturing of smartphone enclosures and components. 

Scheme Benefits: Manufacturing mobile phone enclosures and mechanical components sets up a local supply chain for iPhone casings via this precision molding unit. It reduces lead times and logistics costs for Foxconn’s Indian assembly operations.    

Amara Raja-ATL

Amara Raja-ATL is a joint venture between Amara Raja Group and Alpha Technology Limited (ATL) for lithium-ion battery production. 

Scheme Benefits: Advanced Battery packaging and Cell manufacturing for consumer electronics aids their pivot from automotive lead-acid to high-growth Lithium-ion tech. This diversifies revenue, leveraging possible ATL tech tie-ups into consumer hardware.

Vital Electronics Private Limited

Vital Electronics is an unlisted private company that focuses on electronics manufacturing services, including PCB assembly and precision components for consumer devices. 

Scheme Benefits: Manufacturing enclosures and plastic/polymer components for consumer electronics extends their automotive expertise (wiring harnesses) into tech casings for laptops/routers. It mitigates auto-sector cyclical risks by adding a stable electronics vertical.

Motherson Electronics Components Pvt Ltd

Motherson Electronics is an unlisted private company, part of the Motherson Group, that provides electronic components and full system solutions for automotive and consumer sectors. 

Scheme Benefits: Manufacturing Printed Circuit Board Assemblies (PCBAs) and industrial electronic components scales up EMS capabilities with advanced machinery. This enables competitive pricing to challenge larger players in supplying local electronics brands.

Analyst Opinion

This latest PLI approval feels like rocket fuel for India’s electronics push, with the government handing out massive wins to unlock jobs, local production, and a real shot at ditching import dependence. Dixon and Hindalco shine brightest among the listed plays: Dixon evolves from basic assembly to high-margin components, supercharging its smartphone and IT hardware dominance. Hindalco smartly pivots its metal muscle into premium foils for EVs and gadgets, opening fresh revenue rivers beyond commodities.

Unlisted stars like Tata, Foxconn’s Yuzhan, Samsung Display, Amara Raja-ATL, and Motherson lock in supply chain shifts, iPhone casings, batteries, and PCBs made in India, slashing China risks and lead times. Motherson’s scale-up screams EMS powerhouse potential. Overall, Explosive momentum for self-reliance.

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