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New Indian Express
2 hours ago
- Business
- New Indian Express
Investment depression inevitable consequence of Modi govt's policies of suppression: Congress
NEW DELHI: The Congress on Saturday said the country's economic and investment growth is sluggish due to the Narendra Modi government's "policies of suppression and oppression". In a post on X, Congress general secretary, communications, Jairam Ramesh said India's economic growth "stubbornly refuses" to accelerate at the desired and perfectly feasible rate. The most important reason for this failure, he said, is that private corporate investment continues to remain sluggish in spite of the generous tax cuts in September 2019 and the PLI (production-linked incentive) cash handouts. Ramesh said the Modi Government's own survey indicates that private sector capital expenditure may well be 25 per cent lower in 2025-26 as compared to the previous year. "Informed analysts have opined that while banks are willing to lend, companies are unwilling to borrow since the investment environment is not seen to be conducive to expansion.
Time of India
2 hours ago
- Business
- Time of India
Investment depression inevitable consequence of Modi govt's policies of suppression: Congress
The Congress on Saturday said the country's economic and investment growth is sluggish due to the Narendra Modi government's "policies of suppression and oppression". In a post on X, Congress general secretary, communications, Jairam Ramesh said India's economic growth "stubbornly refuses" to accelerate at the desired and perfectly feasible rate. The most important reason for this failure, he said, is that private corporate investment continues to remain sluggish in spite of the generous tax cuts in September 2019 and the PLI ( production-linked incentive ) cash handouts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo Ramesh said the Modi Government's own survey indicates that private sector capital expenditure may well be 25 per cent lower in 2025-26 as compared to the previous year. "Informed analysts have opined that while banks are willing to lend, companies are unwilling to borrow since the investment environment is not seen to be conducive to expansion. Live Events "Growing demand creates a climate for investment. There are undoubtedly global uncertainties but within India, it is clear that demand growth is being held back because of stagnant wages , a distorted GST structure, and sharpening of inequalities," he said in the post. Ramesh added that amid a widespread consumption slowdown, "there is no systematic incentive for corporates to invest in the creation of additional capacity". The Congress general secretary said investment is as much a financial decision as it is influenced by psychological factors. "These factors have come into greater prominence because of the havoc created by tax terrorism, the gaming of the system by a favoured few, and a feeling of fear and insecurity in the larger corporate world. "Ultimately, the investment depression is the inevitable consequence of the Modi government's policies of suppression and oppression," Ramesh alleged.
Economic Times
4 hours ago
- Automotive
- Economic Times
Kaynes & Avalon Poised for Strong CAGR Through FY27 on Scale; Motilal Oswal sees over 20% upside each
India's Electronics Manufacturing Services sector is experiencing rapid expansion, fueled by strong orders and increasing global relevance. Government initiatives and rising domestic demand across sectors like EVs and infrastructure are key drivers. Companies are scaling up operations, supported by export growth and improved margins. Kaynes Technologies and Avalon Technologies are highlighted as promising investments, with significant growth projections. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Kaynes Technologies: Buy| Target Rs 7300| LTP Rs 5770| Upside 26% Avalon Technologies: Buy| Target Rs 1030| LTP Rs 828| Upside 24% Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) India's Electronics Manufacturing Services (EMS) sector is witnessing rapid growth, supported by a strong order pipeline, ongoing capacity additions, and improving global industry is expanding across segments, backed by rising work content, better execution visibility, and a gradual shift towards higher-margin categories like aerospace, industrial, automotive, and critical inflows remain firm, aided by new client additions, margin-accretive contracts, and prototype-to-production conversions. The cumulative order book for the EMS space (excluding Amber and Dixon) rose 23% YoY to INR 163 billion in FY25, highlighting the sector's robust growth macro drivers are fuelling domestic electronics demand, including higher investments in surveillance, the evolution of electric vehicles and AI applications, and ongoing infrastructure upgrades. Low penetration of consumer electronics and rising income levels also support long-term the increasing involvement of both global and Indian players is strengthening the local value chain. Government-led initiatives such as the Production-Linked Incentive (PLI) and Electronic Component Manufacturing Scheme (ECMS) are further accelerating investments across segments like semiconductors and display companies are scaling up operations to match growing demand. New plant setups, export-oriented units, and investments in areas like OSAT and HDI PCB manufacturing are progressing initiatives cater to rising needs from regions such as Europe, GCC, and North America, while also enabling broader product offerings. Most players saw margin improvements in FY25, a trend likely to continue, boosting earnings summary, the EMS industry is on a strong growth trajectory, supported by favorable demand dynamics, increasing exports, and deepening domestic a supportive policy environment, expanding capacities, and growing importance in global supply chains, the sector is well placed to maintain its growth momentum in the foreseeable is poised for strong FY26 growth with a revenue target of INR45b, driven by higher-margin new orders, operating leverage, and expansion across key verticals such as automotive, aerospace, industrial, and acquisitions have enhanced its global presence & opened new growth opportunities, with future focus on high-margin ODMs & expansion in South Asia & PCB and OSAT units are expected to commercialize by 4QFY26, targeting INR25b revenue in FY27 and INR50b by FY28, with robust margins (~30%/20%). We estimate revenue/EBITDA/PAT CAGR of 57%/61%/70% over FY25–27, driven by scale and margin long-term revenue trajectory is anticipated to be strong, backed by: 1) the addition of new customers in the US and Indian markets, 2) order inflows from the high-growth/high-margin industries, such as clean energy, mobility, and industrials, 3) strategic collaborations and 4) venturing into advanced technology guided for 18-20% revenue growth in FY26, with gross margins of 33-35%. Strategic collaborations (e.g., with Zepco) and capex plans to expand capacity will support future growth. We expect a CAGR of 28%/40%/58% in revenue/EBITDA/adj. PAT over FY25-FY27.(The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
4 hours ago
- Business
- Time of India
Kaynes & Avalon Poised for Strong CAGR Through FY27 on Scale; Motilal Oswal sees over 20% upside each
India's Electronics Manufacturing Services (EMS) sector is witnessing rapid growth, supported by a strong order pipeline, ongoing capacity additions, and improving global relevance. The industry is expanding across segments, backed by rising work content, better execution visibility, and a gradual shift towards higher-margin categories like aerospace, industrial, automotive, and critical infrastructure. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kampong Krabei: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Order inflows remain firm, aided by new client additions, margin-accretive contracts, and prototype-to-production conversions. The cumulative order book for the EMS space (excluding Amber and Dixon) rose 23% YoY to INR 163 billion in FY25, highlighting the sector's robust growth momentum. Several macro drivers are fuelling domestic electronics demand, including higher investments in surveillance, the evolution of electric vehicles and AI applications, and ongoing infrastructure upgrades. Low penetration of consumer electronics and rising income levels also support long-term growth. Additionally, the increasing involvement of both global and Indian players is strengthening the local value chain. Government-led initiatives such as the Production-Linked Incentive (PLI) and Electronic Component Manufacturing Scheme (ECMS) are further accelerating investments across segments like semiconductors and display modules. Live Events EMS companies are scaling up operations to match growing demand. New plant setups, export-oriented units, and investments in areas like OSAT and HDI PCB manufacturing are progressing well. These initiatives cater to rising needs from regions such as Europe, GCC, and North America, while also enabling broader product offerings. Most players saw margin improvements in FY25, a trend likely to continue, boosting earnings predictability. In summary, the EMS industry is on a strong growth trajectory, supported by favorable demand dynamics, increasing exports, and deepening domestic integration. With a supportive policy environment, expanding capacities, and growing importance in global supply chains, the sector is well placed to maintain its growth momentum in the foreseeable future. Kaynes Technologies: Buy| Target Rs 7300| LTP Rs 5770| Upside 26% It is poised for strong FY26 growth with a revenue target of INR45b, driven by higher-margin new orders, operating leverage, and expansion across key verticals such as automotive, aerospace, industrial, and medical. Recent acquisitions have enhanced its global presence & opened new growth opportunities, with future focus on high-margin ODMs & expansion in South Asia & Europe. HDI PCB and OSAT units are expected to commercialize by 4QFY26, targeting INR25b revenue in FY27 and INR50b by FY28, with robust margins (~30%/20%). We estimate revenue/EBITDA/PAT CAGR of 57%/61%/70% over FY25–27, driven by scale and margin gains. Avalon Technologies: Buy| Target Rs 1030| LTP Rs 828| Upside 24% Company's long-term revenue trajectory is anticipated to be strong, backed by: 1) the addition of new customers in the US and Indian markets, 2) order inflows from the high-growth/high-margin industries, such as clean energy, mobility, and industrials, 3) strategic collaborations and 4) venturing into advanced technology segments. Management guided for 18-20% revenue growth in FY26, with gross margins of 33-35%. Strategic collaborations (e.g., with Zepco) and capex plans to expand capacity will support future growth. We expect a CAGR of 28%/40%/58% in revenue/EBITDA/adj. PAT over FY25-FY27. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd ) ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
7 hours ago
- Automotive
- Time of India
EV sales in India projected to grow 40% to 1.38 lakh units in 2025: Report
New Delhi: Passenger electric vehicle (EV) sales in India are expected to grow by around 40 per cent in 2025 to reach 1,38,606 units, up from 99,004 units in 2024, according to estimates released by market research and consulting firm Frost & Sullivan. Battery electric vehicles (BEVs) are expected to continue dominating the Indian EV market in 2025, while plug-in hybrid electric vehicles (PHEVs) are projected to account for only 0.1 per cent of sales. The report indicates that fuel cell electric vehicles (FCEVs) have not yet entered the Indian market and BEVs will continue to lead in the near term. 'SUVs and sub-compact SUVs drive the growth of EV sales in India ,' the report noted. As per 2024 data, Tata Punch, Tata Tiago, Tata Nexon, MG Comet, and MG Windsor were the top five EV models in terms of unit sales. Tata Motors led OEM sales in 2024, followed by JSW MG Motor India, Mahindra & Mahindra, BYD India, and PCA India (Citroen). The forecast for 2030 shows that EV sales could reach close to 7 lakh units under a baseline scenario. The report identifies Tata Motors, Mahindra & Mahindra, and MG Motor as the leading competitors in the space, operating with different business models. 'EV models will have driver-assist features in premium segments in the near term, however, in the long-term autonomous fleets will operate in gated communities,' the report stated. It further noted that original equipment manufacturers (OEMs) will have to be flexible in their strategies depending on market conditions and charging infrastructure. The report highlights that the Indian EV ecosystem has evolved with the support of various government initiatives such as FAME I, FAME II, Production-Linked Incentive (PLI) scheme, PM eBus Sewa, and PM eDrive. The FAME I scheme launched in April 2015 with a budget of ₹795 crore focused on early adoption, followed by FAME II in April 2019 with a budget of ₹11,500 crore to support mass adoption. The PLI scheme introduced in 2021 aims at manufacturing localisation with a ₹44,000 crore outlay. 'Government support is not limited to EV sales but is also focusing on all type of applications such as e2W, e3W, eBuses and charging infrastructure,' the report said. According to the report, India currently has over 25,500 public charging stations hosting about 60,000 connectors. Karnataka, Maharashtra, Delhi, and Tamil Nadu account for the highest number of installed EV chargers. To support future EV penetration, the country will require one charging connector for every five EVs by 2030. On the manufacturing side, the report lists critical challenges such as dependence on imported raw materials for batteries including lithium, nickel and cobalt, limited domestic cell manufacturing capability, and high reliance on battery management systems and power electronics from Chinese, Japanese, and Korean firms. The report also outlines that battery recycling, advanced power electronics, 800V architecture, vehicle-to-grid integration, battery swapping systems, and inductive charging are among the next set of technologies to watch in India's EV transition. The EV market in India is also expected to see the introduction of new technologies such as range extenders and hybrid fuel solutions combining ethanol and battery. The report cites strong indications of the introduction of PHEVs and extended range EVs (eREVs) in the Indian market.
