 "Kaynes up 14%, hits record high on Rs 3,750 crore MoU with Karnataka Govt")
Kaynes will setup Semiconductor Assembly & Testing (OSAT) facility and Printed Circuit Board (PCB) manufacturing plant through its step down subsidiaries. The stock has surpassed its previous high of Rs 1,908.65 touched on July 26.
In an exchange filing, Kaynes Technology said Kaynes Semicon Private Limited will lead the setup of a Semiconductor Assembly & Testing (OSAT) facility and Kaynes Circuits India Private Limited will spearhead the establishment of a Printed Circuit Board (PCB) manufacturing plant for producing complex multi-layered boards.
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The MoU with Kaynes will put Karnataka in the forefront of OSAT and PCB with an investment of Rs 3,750 crore. The agreement will help in creating 3,200 jobs by harnessing collective expertise, meet pressing demands, and make Karnataka as a hub for cutting-edge semiconductor manufacturing.
At 10:26 am; the stock of Kaynes quoted 8 per cent higher at Rs 2,012, as compared to 0.63 per cent decline in the S&P BSE Sensex. With Friday's rally, the stock zoomed 261 per cent from its issue price of Rs 587 per cent. The company made market debut on November 23, 2022.
Kaynes is primarily engaged in Design and Manufacturing of advanced electronic modules and solutions catering to a wide range of industries.
In its FY23 annual report, the company said that the domestic demand for electronics is anticipated to rise at compounded annual growth rate (CAGR) of 10.6 per cent over the next fve years starting 2022, reaching a market worth Rs 13,46,300 crore. In terms of exports, India’s electronics export has reported a stupendous growth of 49 per cent to $25.3 billion in 2022-23, even when the overall exports growth stood at 6.5 per cent.
The growth was primarily driven by higher mobile phone production and shipments. Although the surge in exports is promising India remains a minor player with exports at $25.3 billion as to compared to $671.5 billion of China in FY2022-23. This offers ample opportunities to grow specially when import countries are looking at alternative to China.
The industry has significantly benefited from the PLI (Production Linked Incentive) scheme, receiving majority of incentives provided.
"With initiatives like the PLI scheme, significant investments are being made in the electronics industry, particularly in mobile phones and soon in white goods. This trend will pave the way for substantial growth in electronic component manufacturing in the future and strengthen India’s position in the electronics industry and promote self-reliance in the sector," the company said in its annual report.