PG Electroplast Wins From India’s Gadget Boom
PG Electroplast transforms from components maker to consumer electronics powerhouse, riding India's tech manufacturing boom and reshaping the country's role in global supply chains. Stock hits all time high.
Soaring demand for consumer electronics has helped PG Electroplast become a one-stop shop for major brands cranking out everything from air conditioners to LED TVs.
Why it matters: As the country's middle class swells and appetite for consumer electronics grows, homegrown manufacturers are seizing the moment.
- This shift also signals a maturing of India's manufacturing ecosystem, which is critical to GDP growth.
Born as a humble component maker, PG Electroplast isn't just assembling gadgets — it's a Swiss Army knife of manufacturing.
- Washing machines to ACs: PG is the second largest original device manufacturer nationwide.
- Partnered with brands like Voltas and Lloyd for their cooling solutions.
- Plastic fantastic: Molding everything from TV bezels to car dashboards.
- Produces over 15,000 metric tons of plastic components annually.
- Their ODM TVs are Google-certified, putting them in the big leagues of Android TV manufacturers.
- Circuit city: Churning out the brains of your gadgets.
- Assembles PCBs for smart TVs, including for industry leaders like Samsung.
- Beyond gadgets: They're not putting all their eggs in the electronics basket.
- Diversifying into engineered plastics for bathrooms and cars, hedging against tech sector volatility.
Between the lines: This broad diversification has helped PG become indispensable to big brands looking for one-stop manufacturing solutions in India.
Backdrop: India's appliance and consumer electronics market is expected to reach $21.18 billion by 2025.
- Government initiatives like "Make in India" and Production Linked Incentive (PLI) schemes are boosting domestic manufacturing.
- Global supply chain disruptions are prompting brands to seek alternatives to China for manufacturing.
By the numbers:
- PG Electroplast's market cap has surged to ₹13,878 crore
- Stock has more than tripled in the last 12 months
Fundamentals have also kept pace. PG's profits soared 75% to ₹135 crore in FY24. The company reports a class leading 57% annualized 3 year sales growth rate.
Yes, but: Promoter holding in the stock has decreased by 12.3% over the last 3 years, and competition in the electronics manufacturing space is intense.
The bottom line: As global brands increasingly look to India as their next manufacturing hub, companies like PG Electroplast are not just riding the wave, they're shaping the tide of India's nascent manufacturing revolution.
