To power the local production of AC and LED components, the Ministry of Commerce selected 24 companies under the PLI Scheme for White Goods.
On Monday, the Ministry of Commerce and Industries announced the third round of the Production-Linked Incentive (PLI) Scheme for White Goods, where 24 companies have been selected, committing a total investment of ₹35.16 billion.
This initiative mainly targets the local production of components for air conditioners (ACs) and LED lights. Out of 38 applications received, the government has provisionally approved 18 new firms, including ten manufacturers for AC components and eight for LED lights, totalling an investment of ₹22.99 billion.
Furthermore, six existing PLI beneficiaries have been upgraded to higher investment categories, contributing an additional ₹12.17 billion.
The PLI Scheme eyes to increase domestic value addition, moving from the current 15-20% to a targeted 75-80%. For ACs, the scheme will focus on producing components such as compressors, copper tubes, heat exchangers, and BLDC motors, while for LED lights, the focus will be on items like LED chip packaging, drivers, engines, and light management systems.
Selected companies and investment commitments
For AC components, a total investment of ₹20.59 billion has been committed by various companies. These companies include Jupiter Aluminium Industries Private Limited, which will invest ₹6.18 billion for aluminium stock used in heat exchanger foils or fins; Ram Ratna Wires Limited, investing ₹2.53 billion for copper tubes and aluminium stock; SMEL Steel Structural Private Limited, committing ₹5.41 billion for aluminium stock for heat exchangers; and Voltas Components Private Limited, which will invest almost ₹2.57 billion for compressors.
Other companies include Next Generation Manufacturers Private Limited (₹1.21 billion for various components), Neemrana Steel Service Center India Private Limited (₹661.5 million for sheet metal components), Clad Metal India Private Limited (₹500 million for control assemblies, valves, and heat exchangers), Malhotra Electronics Private Limited (₹500 million for control assemblies, cross flow fans, and display panels), MIRC Electronics Limited (₹515 million for components including motors and display panels), and Smile Electronics Limited (₹510 million for similar components).
For LED lights, a total investment of almost ₹2.4 billion has been committed by several companies. These include Ikio Solutions Private Limited, which will invest ₹410 million for LED modules, transformers, and light management systems; Lumax Industries Limited, committing ₹600 million for LED drivers; Neolite ZKW Lightings Private Limited, with ₹236.6 million for LED modules; and Dhruv Industries Limited, investing ₹160 million for metallised film for capacitors.
Other companies include Uno Minda Limited, which will invest ₹198.2 million for various LED components; HQ Lamps Manufacturing Co. Private Limited, with ₹100 million for LED drivers and mechanical housings; Intelux Electronics Private Limited, investing ₹515 million for LED drivers and modules; and Hella India Automotive Private Limited, committing ₹178.4 million for LED drivers.
Upgraded existing beneficiaries
Additionally, six existing companies have increased their investment commitments. Hindalco Industries Limited has raised its investment from ₹5.39 billion to ₹8.99 billion for aluminium and copper components. LG Electronics India Private Limited has boosted its commitment from ₹3 billion to ₹7.33 billion for compressors and motors. Mettube Copper India Pvt Ltd has increased its investment from ₹3 billion to almost ₹3.28 billion for copper tubes.
Blue Star Climatech Limited has raised its investment from ₹1.56 billion to ₹3.36 billion for control assemblies and heat exchangers, while Voltas Limited has increased its commitment from ₹1 billion to ₹3 billion for various components. Additionally, Halonix Technologies Private Limited has raised its investment by ₹166.1 million for LED modules and housing.
Moreover, 13 applicants, including two existing applicants, are being referred to the Committee of Experts (CoE) for further examination. These applications involve both AC components and LED light products, with investments ranging from ₹100 million to almost ₹1.42 billion.
The Union Cabinet had approved the PLI Scheme for White Goods, covering the period from FY 2021-22 to FY 2028-29, with an outlay of ₹62.38 billion. The scheme offers incentives ranging from 6% to 4% on incremental sales, with a gestation period of one year. The target is to generate production worth nearly ₹1.73 trillion, with a total investment of ₹104.78 billion across all 84 companies under the scheme.
