The auto components major, Samvardhana Motherson International’s arm Motherson Electronic Components has secured incentives under the government’s production linked incentive scheme.
In its BSE release on Monday, January 5, Motherson Electronic Components plans to invest Rs 1,900 crore over six years from FY26 to FY31 and create over 5,000 jobs at its Kanchipuram plant in Tamil Nadu.
Motherson Electronic Components named ECMS beneficiary
Motherson Electronic Components has been included among the beneficiaries of the Electronics Components Manufacturing Scheme (ECMS) announced by the Ministry of Electronics and Information Technology (MeitY) earlier this month, for the production of enclosures for the consumer electronics industry.
What is Electronics Components Manufacturing Scheme (ECMS)
Recently, the Indian government has approved 22 new proposals under the Electronics Components Manufacturing Scheme (ECMS). Electronics Components Manufacturing Scheme is a proposed Government of India incentive scheme aimed at strengthening domestic manufacturing of electronic components, reducing import dependence and create jobs.
Under the approval companies such as Dixon, Tata Electronics, Samsung Display, Foxconn and Hindalco are among the beneficiaries. The approved proposals involve a combined investment of Rs 41,863 crore.
This marks the third tranche of approvals and includes the manufacturing of 11 target segment products that have cross-sectoral applications, such as mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware.
Motherson to invest Rs 1,900 crore under ECMS
Motherson Electronic Components, these incentives are for six years — from FY26 to FY31, with an expected cumulative investment of Rs 1,900 crore over the investment period, it added. “MECPL is looking to create over 5,000 employment opportunities at its plant in Kanchipuram, Tamil Nadu, during the course of these incentives,” SAMIL said.
“Motherson’s inclusion in the ECMS initiative reflects its strong capabilities and readiness to scale operations
in high value segments such as consumer electronics,” Samvardhana Motherson International added
Samvardhana Motherson International share price
The share price of Samvardhana Motherson International closed in the red, down 0.29% at Rs 121.75. The stock, however, has gained significantly in the past few months. It has risen 18.4% in the last six months and 14.16% in the last three months.