![]() ![]() With the global supply chain adopting the 'China plus one' strategy, a new opportunity has opened up for Dixon Technologies. The company also offers repair and refurbishment services for the same.ĭixon Technologies' clients include Samsung, Xiaomi, One Plus, Havells, Bajaj, and Godrej. The company operates as an original equipment manufacturer (OEM) and original designing manufacturer (ODM) for several industries, including LED TVs, consumer durables, and mobile phones. We have shortlisted five such companies that you should watch out for.įirst on the list is Dixon Technologies, one of India's leading manufacturers of electronics. Many Indian companies stand to benefit from the 'China plus one' strategy. This turned out to be an excellent opportunity for India as the manufacturing cost is low here and the availability of skilled labour is high.Īdditionally, the government's push towards making India a global manufacturing hub is making global giants consider India as an option. This forced global companies to downsize their operations in China and adopt what is widely known as the 'China plus one' strategy. However, since the pandemic, global companies have been looking beyond China to manufacture their products.Ĭhina's zero-Covid policy led to industrial lockouts which led to longer lead times and high freight rates during the pandemic. Over the years, China has emerged as the global manufacturing hub, accounting for about 30% of the world's manufacturing output.Ī good business ecosystem and low labour costs were why global companies picked China for manufacturing. 15 Mistakes to Avoid while Investing in Stock Markets.10 Rules for Successful Long-Term Investing.Your Ultimate Guide to Penny Stock Investing.With China losing its dominance in manufacturing speciality chemicals, Aarti Industries' leadership and scale will help it expand its business rapidly in the next few years.(Please do not use this option on a public machine) Given the tailwinds in the speciality-chemical industry, it has planned to invest around Rs 2,500- 3,000 crore in its chemical operations and Rs 350-500 crore in its pharma operations during FY22-FY24 to add over 40 products to its chemicals segment and over 50 products to the pharma segment, thereby increasing its overall operating margin. Over the last five years, its revenue and profits have grown by 8.4 per cent and 14.8 per cent, respectively, thereby helping its share price grow by a solid 41 per cent. Thanks to its global presence, the company earned 44 per cent of its FY21 revenue from exports. It has backward integration for most of its APIs.Īarti Industries earned around 83 per cent of its FY21 revenue from speciality chemicals and 17 per cent from pharmaceuticals. The company is one of the top three global players for Nitro Chloro Benzene (NCB) and Di-chloro Benzenes (DCB). Of its 20 manufacturing plants, 15 plants manufacture speciality chemicals and five plants manufacture pharmaceuticals. Involved in manufacturing speciality chemicals and pharmaceuticals, Aarti Industries has over 200 products and serves 400 customers worldwide. Prudent government policies and macroeconomic tailwinds have put India on a solid growth trajectory. Experts have also stated that this will ultimately result in an increase in employment opportunities. ![]() As revealed by companies from various sectors such as textile, pharmaceuticals, steel and speciality chemicals, the 'China Plus One' strategy acts as a major growth catalyst. For example, the PLI scheme for the steel sector is expected to bring investments of Rs 40,000 crore. In a bid to attract foreign investments, the Indian government has provided various incentives to many industries. As per a survey conducted by UBS, around 20-30 per cent of manufacturing activities may leave China and India is the primary candidate to capitalise on the situation, owing to low labour costs, a friendly business environment and government incentives. The strategy intends to make the global supply chain more efficient. Against this backdrop, multinational companies have come up with the 'China Plus One' strategy to diversify their businesses into other Asian countries, such as India, Bangladesh, Vietnam, Thailand, Malaysia and many more. However, a host of factors, including an increase in labour costs from an initial $0.6 per hour to $4.8 per hour in 2015, a stringent business environment and huge compliance costs, have now cast a shadow on this favourable situation in China. Accounting for about 30 per cent of the global manufacturing output, China has emerged as the manufacturing hub of the world over the last few decades on the back of a good business ecosystem and low labour costs. ![]()
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