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Soaring demand for consumer electronics has helped PG Electroplast become a one-stop shop for major brands cranking out everything from air conditioners to LED TVs.
Why it matters: As the country's middle class swells and appetite for consumer electronics grows, homegrown manufacturers are seizing the moment.
- This shift also signals a maturing of India's manufacturing ecosystem, which is critical to GDP growth.
Born as a humble component maker, PG Electroplast isn't just assembling gadgets — it's a Swiss Army knife of manufacturing.
- Washing machines to ACs: PG is the second largest original device manufacturer nationwide.
- Partnered with brands like Voltas and Lloyd for their cooling solutions.
- Plastic fantastic: Molding everything from TV bezels to car dashboards.
- Produces over 15,000 metric tons of plastic components annually.
- Their ODM TVs are Google-certified, putting them in the big leagues of Android TV manufacturers.
- Circuit city: Churning out the brains of your gadgets.
- Assembles PCBs for smart TVs, including for industry leaders like Samsung.
- Beyond gadgets: They're not putting all their eggs in the electronics basket.
- Diversifying into engineered plastics for bathrooms and cars, hedging against tech sector volatility.
Between the lines: This broad diversification has helped PG become indispensable to big brands looking for one-stop manufacturing solutions in India.
Backdrop: India's appliance and consumer electronics market is expected to reach $21.18 billion by 2025.
- Government initiatives like "Make in India" and Production Linked Incentive (PLI) schemes are boosting domestic manufacturing.
- Global supply chain disruptions are prompting brands to seek alternatives to China for manufacturing.
By the numbers:
- PG Electroplast's market cap has surged to ₹13,878 crore
- Stock has more than tripled in the last 12 months
Fundamentals have also kept pace. PG's profits soared 75% to ₹135 crore in FY24. The company reports a class leading 57% annualized 3 year sales growth rate.
Yes, but: Promoter holding in the stock has decreased by 12.3% over the last 3 years, and competition in the electronics manufacturing space is intense.
The bottom line: As global brands increasingly look to India as their next manufacturing hub, companies like PG Electroplast are not just riding the wave, they're shaping the tide of India's nascent manufacturing revolution.
