Global manufacturers are increasingly adopting the China+1 strategy to diversify production and reduce dependence on China. India has emerged as one of the key alternatives, supported by government incentives, improving infrastructure and a growing manufacturing ecosystem.
According to government estimates, manufacturing currently contributes around 17% to India’s GDP, with a target of increasing the share to 25% in the coming years.
Against this backdrop, several electronics manufacturing services (EMS) companies are seen as potential beneficiaries.
Dixon Technologies
Dixon Technologies Ltd is India’s largest electronics manufacturing services company.
It manufactures:
- Smartphones
- Televisions
- Washing machines
- LED lighting products
- Wearables
- Consumer electronics
The stock was trading around ₹12,785, up 4.5%.
India’s smartphone exports crossed ₹2 lakh crore in FY25, with contract manufacturers accounting for a significant portion of production.
Dixon has expanded its manufacturing capacity through partnerships with global brands and could benefit from:
- Higher export opportunities
- Increasing localisation requirements
- Rising order volumes
Kaynes Technology
Kaynes Technology India Ltd provides electronics manufacturing services across multiple sectors.
Its presence spans:
- Aerospace
- Defence
- Automotive
- Railways
- Industrial automation
- Medical equipment
Shares of the company were trading around ₹3,245.70, up 2.43%.
The company has been expanding its manufacturing footprint and investing in advanced electronics and semiconductor capabilities.
Growing demand from sectors such as electric vehicles, defence electronics and industrial automation could support future growth.
PG Electroplast
PG Electroplast Ltd manufactures consumer durables and electronic components for domestic and global brands.
Its product portfolio includes:
- Air conditioners
- Washing machines
- LED televisions
- Electronic components
The stock was trading around ₹545.70, up 3.46%.
The company has expanded production capacity and strengthened relationships with major brands.
Increasing localisation and outsourcing by global companies could create additional opportunities for the company.
Why China+1 Matters
The shift in global manufacturing is being driven by:
- Geopolitical tensions
- Supply chain disruptions
- Rising labour costs in China
Countries such as India, Vietnam and Mexico have emerged as alternative production hubs.
India has introduced production-linked incentive (PLI) schemes covering sectors such as:
- Electronics
- Semiconductors
- Pharmaceuticals
- Solar equipment
- Automotive components
According to industry estimates cited in the report, India’s electronics manufacturing market could exceed ₹25 lakh crore over the next decade.
TL;DR:
Dixon Technologies, Kaynes Technology and PG Electroplast are among the companies that could benefit as multinational firms diversify supply chains under the China+1 strategy and expand manufacturing operations in India.
AI summary:
- Global manufacturers are adopting the China+1 strategy.
- Dixon Technologies was trading around ₹12,785.
- Kaynes Technology shares were at ₹3,245.70.
- PG Electroplast traded around ₹545.70.
- India’s electronics manufacturing market could exceed ₹25 lakh crore over the next decade.
