Atma Nirbhar Bharat - Stock opportunities

Currently, India is the fifth largest economy in the world lagging US, China, Germany and Japan.

India is aspiring to become 3rd largest economy by another 4-5 years. However the lingering challenge here is the manufacturing sector which just contributes only 13% to GDP, lagging behind agriculture (15%).

Atmanirbhar Bharat ( self-reliant India) is a phrase the Prime Minister of India Narendra Modi and his government used and popularised in relation to the country’s economic development plans. Slogans initiated under Atmanirbhar Bharat include “vocal for local”, '“local for global”, “make for world” and "brain drain to brain gain.

He started using this phrase during the 2020 pandemic when he came out with an economic package to revive the economy. Then covaxin a-5 ml vaccine was born in India to vaccinate 1400 million people at a time when the world was facing acute shortage of Covid vaccine- a glowing example of Atma Nirbhar Bharat.

Then came the Galwan valley incident with China , after which china started arm twisting in all its supplies to India. Indians wete also hesitating to buy Chinese products and that is how a series of PLI schemes were born to become atma nirbhar Bharat in various sectors. Now the PLI scheme covers 14 sectors- an update on status of these 14 PLI schemes- link given below. The list does not include the PLI for Drone and PLI for Space sector which are the latest addition to the list of 14.

Modi Govt should get the credit for these PLI schemes and the early signs of results is already seen in some sectors though we still have a long way to go.

Atma Nirbhar Bharat is only a Hindi phrase , but nothing new though. Gandhi ji during pre- independence era started with the Swadeshi movement with charakha for textiles, Salt…He also started Swaraj (Self governance).Today we are self reliant in Textiles.

In 1970’s, Dr Verghese Kurien started white revolution in India called operation flood- Today is India is no 1 milk producing nation in the world.

Similarly, MS Swaminathan is known as the Father of Green Revolution in India. The basic approach was the development of high-yielding varieties of cereal grains, expansion of irrigation infrastructure, modernization of management techniques, distribution of hybridized seeds, synthetic fertilizers, and pesticides to farmers…Today we are self reliant on food grain production , though still the poorest of the poor still don’t get food is another issue to be tackled.

So how many sectors are we self reliant as of today - Atma Nirbhar Bharat?
India has achieved self-reliance or ‘atma nirbharta’ in textiles and clothing, Agriculture & food processing, Dairy & Animal husbandry, aquaculture, iron and steel, Aluminium, Biotechnology, defence manufacturing to a great extent.
We are amply self reliant in service sector like BFSI, Aviation , Transport- Road, rail, aviation ,Health Care , diagnostics, construction, IT services , Digitisation- no wonder our service sector contributes 50% to India’s GDP.

Some of the recent examples of self reliance on recent days are Maruti 800 car, Amul, HDFC, pharmaceutical companies Bharat Biotech and Serum Institute of India, have been considered examples of self-reliance in India. There may be many more…
Can we name other such examples ?

The five pillars of Atmanirbhar Bharat are economy, infrastructure, technology-driven systems, vibrant demography. Already , there is a lot of capex happening on infrastructure, Railway, Defence.
As mentioned earlier , for the economy to grow , the Elephant in the room is the manufacturing sector.The PLI scheme, conceived with the aim of overhauling domestic Manufacturing, seeks to amplify capacity and competence and create global champions. Its broader goals, include job creation, attracting substantial investments, enhancing exports, and positioning India as a global manufacturing hub. Its multiplier effects can lead to a potential surge in the manufacturing sector’s contribution to the GDP, and to a seamless integration of domestic firms into regional and global production networks.

So it is exciting to watch those companies participating in India’s PLI schemes and growth stories and we as investors would like to discuss and find opportunities for our investment in these PLI linked emerging sectors /stocks where the govt is likely to encourage especially if Modi 3 comes to power.

It is not to say that the other sectors are not worth investing. India is the youngest nation in the world with the economy growing by leaps and bounds , all sectors would be growing proportionate to GDP.

Here is a comprehensive list of PLI schemes plus other incentives / Subsidies for some 41 sectors published by the Govt from time to time.
you may please refer 4 th link in sequence below.

https://www.investindia.gov.in/production-linked-incentives-schemes-india

https://www.investindia.gov.in/atmanirbhar-bharat-abhiyaan

https://www.business-standard.com/opinion/columns/pli-propelling-india-towards-atmanirbhar-future-in-pharma-and-meditech-124030800214_1.html

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Kaynes Technology gets order for 3000 servers for Govt of India’s Rudra Supercomputer program

Kaynes along with Syrma SGS, Netweb, ITI, Dixon have been granted under EMS PLI approval

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PLI for ACC -Advanced Chemistry Cell - During the Second round of bidding the successful bidders includes JSW Neo Energy Limited, Reliance Industries Limited, Lucas TVS Limited, Waaree Energies Limited, Amara Raja among others.

The first round of the ACC PLI bidding was concluded in March 2022. Ola Cell Technologies* won the lion’s share with 20 GWh capacity in its kitty. ACC Energy Storage (bid as Rajesh Exports) and Reliance New Energy Battery Storage were awarded incentives for 5 GWh each.

Govt creates Non-tariff barrier for Chines products -Solar panel / cell manufacturing.

This will ensure growth of Indian solar panel / cell manufacturing and will prevent Chinese dumping

In a 60,000 crore tender, India’s Mazgaon Dock & L&T partners with Thyssenkrupp of Germany and Navantia of Spain to build 6 advanced submarine for Indian Navy. Indigenous content at minimum 60%.

https://www.aninews.in/news/world/asia/indian-navy-begins-trials-in-rs-60000-crore-tender-for-6-advanced-submarines20240503202534

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Atma Nirbhar Bharat- 8 defence stocks beat benchmark by wide margin- Soar up to 267% in a year

https://m.economictimes.com/markets/stocks/news/8-defence-stocks-beat-benchmark-by-wide-margin-soar-up-to-267-in-a-year/zen-technologies/slideshow/10 9821970.cms

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10 Solar stocks outshine with up to 1,318% return in 1 year.

Q4-Good show by Kaynes technology. Beats Street estimates.

Kaynes being one among 27 other EMS companies the beneficiary under the Govt’s IT hardware production-linked incentive (PLI) 2.0 - Atma Nirbhar Bharat. Earlier , the company had got a huge order of Rudra Super Computer Servers from Govt of India.

Discl : Invested at lower level. Stock is expensive now.
I may be biased. It is not a buy sell recommendation.Please do your own assessment before buy sell.

Kaynes Semicon- A subsidiary of kaynes technology to make chips for Ola EV

https://www.business-standard.com/companies/news/ola-in-talks-with-mysuru-based-kaynes-semicon-to-make-chips-for-its-evs-124051701379_1.html

Pharma PLI scheme gathers steam with investments of Rs 33000 Crore within 3 years since it was started

While Chinese Dependence on KSM has reduced , still we have a long way to go to build the ecosystem in line with China. However , a good beginning seems to have been made towards our objective of Atma nirbhar Bharat in pharma,
API & KSM

https://www.financialexpress.com/business/industry-pharma-pli-scheme-gathers-steam-with-investments-of-rs-33000-crore-3498196/

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Hello,

In the below tracker, I have started tracking important company goals for Kaynes.These goals are referred to as ‘monitorables’ in the tracker.I will update this document regularly to reflect the current status of these goals.

Here’s a snapshot of what the tracker includes:

  • Company Ticker: For identifying the company
  • Monitorable Description: Description of the goal or metric being tracked
  • Date of Announcement: When the monitorable was announced
  • Deadline: Target date for achieving the monitorable
  • Status: Current progress (e.g., Not Fulfilled, Pending)
  • Verification Link: A link to see where I got the information about the goal.

I hope this information makes it easier to observe how well companies are progressing towards their stated goals.

Screenshot of the tracker below:

Full tracker attached below:
Tracking Company Monitorables-3.xlsx (121.8 KB)

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Growth oriented EMS stocks with export potential under Atma nirbhar Bharat PLI

Value-add target in new PLI scheme for electronics manufacturing may double

Good news for EMS sector-One more PLI expected (4th in series )

In a move to deepen manufacturing in electronics in India, the Centre is targeting 35-40 per cent value-addition through the yet-to-be launched production-linked incentive (PLI) scheme for electronics components, sources in the government told Business Standard. This target implies doubling of value-addition from the current levels of 18-20 per cent in the case of electronics manufacturing through various incentive schemes.

PLI scheme to attract 3-5 lakh Crore over next 4 years- ICRA

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GRSE- Garden reach Ship builders of India makes the highly sophisticated Kamorta class of ASW Corvettes that are equipped with Anti-aircraft Guns, Torpedo Launcher, Under Water Sensors, Super Rapid Gun Mounting, Integrated Communication System, and more.

https://x.com/OfficialGRSE/status/1800077189167329441

https://x.com/OfficialGRSE/status/1799067513457893786

https://idrw.org/grse-ventures-into-autonomous-platforms-across-surface-subsurface-and-aerial-domains/

Discl : Stock trading 52 week high /all time high. Invested from lower level. May be biased. Not a buy sell recommendation. Please make your own assessment before investing / selling. Stock