Panache DigiLife: Telecom PLI brings game-changing opportunities for the company

As per Panache, PLI scheme for Telecom and Networking Products offers an incentive to boost domestic manufacturing and attract large investments.

October 18, 2021 3:40 IST | India Infoline News Service
Panache DigiLife Limited (“Panache”)  has been selected under the Telecom - Production Linked Incentive (PLI) (Scheme for Telecom and Networking Products) by the Ministry of Communications. This is the second PLI for the company after IT Hardware PLI under which the company is poised to manufacture IT products like Servers, Laptops, Tablets & AIO PC. Panache said that the telecom PLI brings game-changing opportunities for the company.

Amit Rambhia, Chairman & Managing Director states that "The PLI scheme initiated by the Govt. of India is expected to bring in additional Capital Investments in the Telecom & Networking sector and will also generate additional employment. In the current scenario, the use and dependability of Telecom and Networking products has increased sizeably due to many resorting to Work from Home and students studying at home. At this juncture, the PLI scheme thus will enhance the enthusiasm of the Telecom and Networking
Industry through the additional investment and scope of increased exports."

Nikit Rambhia, Joint Managing Director said, "The PLI scheme is expected to generate more opportunities in area of new product development and also development of products of import substitution. The scheme shall make India Proud in coming times and India becoming a leader in the sector. We have been bringing in newer and advance technology products in the Indian market and now with PLI scheme, we will have more opportunities of bringing in technologically advanced and futuristic Telecommunication and Network products in the Indian Market to complement the movement of making India “Atmanirbhar Bharat.” Our products are AI enabled, power efficient and are way ahead of older and contemporary available products in terms of performance."

As per Panache, PLI scheme for Telecom and Networking Products offers an incentive to boost domestic manufacturing and attract large investments. The Scheme shall extend an incentive of 7% to 4% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of five (5) years. The Target Segment under PLI shall include (i) Core Transmission Equipment (ii) 4G/5G, Next generation Radio Access Network and Wireless Equipment (iii) Access & Customer Premises Equipment (CPE), IoT Access Devices and Other Wireless Equipment and (iv) Enterprise equipment: Switches, Routers.

Panache highlighted that incentive shall be subject to meeting minimum incremental sales and investment thresholds. The investment threshold for domestic companies has been as low as Rs 10 crores to make the scheme workable for small players. A MSME company applying under the scheme is eligible for benefits up to 20 times the investment made under the scheme.

PLI scheme is being launched by DoT with the objective to boost domestic manufacturing in the telecom and networking products by incentivising incremental investments and turnover with total outlay of Rs 12,195 crore. The scheme is effective from 1st April, 2021. Investment made by successful applicants in India from 1st April, 2021 onwards and up to FY 2024-25 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five (5) years, i.e. from FY 2021-22 to FY 2025-26.

On NSE, Panache closed at the upper price band of Rs62.40 per piece up 4.96%.

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