6 Listed Stocks Benefitting from Make in India

The Make in India scheme was started by the Union Government of India, in September 2014, to boost the manufacturing capabilities of India. It was spearheaded by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry. The scheme has the following primary objectives:

1. Attract foreign companies to set up their manufacturing divisions in India. This would create jobs in India and provide the Indian workforce with modern manufacturing skills.
2. Encourage and expand the domestic manufacturing industry in India, aiming to increase the contribution of the manufacturing sector to the GDP.

In this article, let us take a look at listed companies benefiting from Make in India and how the scheme is helping the Indian economy grow.

6 Listed Stocks Benefitting From the Make in India Scheme

The following is a list of some of the companies that have benefitted greatly from the Make in India scheme:

*Figures as of 9th August 2023.

Hindustan Aeronautics Ltd. (HAL)

HAL is one of the oldest aerospace and defence manufacturing companies in India that produces various types of military aircraft and related machines. They are a key player in India’s push for indigenisation of its military technology. HAL offered some of the important Indian-origin alternatives to key military equipment, such as the LCA Tejas (fighter jet) and the HAL Prachand (attack helicopter). It is also a part of the efforts to domestically produce the PSLVs and GSLVs for ISRO.

Waa Solar Ltd.

WAA Solar is an India-based solar power generation company. It has set up multiple solar power projects across the country and is focused on Engineering, Procurement and Construction projects. Renewable energy, including solar energy, is a major part of the Make in India initiative. Solar energy is also a key part of the government’s PLI schemes as well. The government wishes to expand India’s solar power production and exports in the coming years. Therefore, WAA Solar is poised for further growth in the coming years.

Berger Paints India Ltd.

It is a Kolkata-based paint company that has benefitted from the inclusion of chemicals as well as construction as an important sector under the Make in India scheme. In March 2023, its new manufacturing plant was inaugurated in Sandila. While decorative paint accounts for over 80% of its revenue, the rest comes from the industrial segment. In terms of rankings among decorative paint companies, it is 2nd largest in India, 4th in Asia and 7th in the whole world. 

Reliance Industries Ltd.

One of the biggest brands in not just India but the world, Reliance has a very diverse set of businesses that come under a single company. Segments that are connected to Make in India include oil and gas, media and entertainment and telecommunications. It owns the largest refinery in the world. Reliance Jio has also been an immensely successful venture in the telecom space, offering highly competitive rates for internet data services. The company has joint ventures with foreign firms, whereby it sets up jointly owned manufacturing plants in India.

Sun Pharmaceuticals Industries Ltd.

Biotechnology is one of the key focus areas of the Make in India campaign. India is often referred to as the ‘Pharmacy of the World’ because of the sheer amount of generic drugs that it produces and exports. In this respect, one must look at Sun Pharmaceuticals, which is one of the biggest producers of APIs or active pharmaceutical ingredients in India. It has set up numerous factories across India, from Himachal to Tamil Nadu.

Apollo Tyres Ltd

Apollo Tyres is one of the biggest tyre-manufacturing companies in India. With a boost to automobile and auto parts manufacturing in India under the Make in India scheme, Apollo Tyres has benefitted from the increased demand from automobile manufacturers. With a new push for electric vehicles to be produced in India, the demand for its products is expected to increase in the coming years.

How Does Make in India Help Indian Companies?

There have been several achievements of Make in India in the past few years, including attracting foreign and domestic investment into manufacturing. In this context, Indian companies have been major benefactors from the Make in India initiative because of the following reasons:

1. Domestic manufacturing companies get a boost from the improved infrastructure, ease of doing business, and PLI schemes. Conducting manufacturing becomes easier and more profitable for them.
2. Whenever a manufacturing plant is set up in India, a lot of ancillary industries supplying raw materials and machine parts to the new plant benefit from the increased demand. The requirement for high-quality products also drives local companies to develop greater capabilities.
3. The workers trained by the new foreign manufacturers become world-class in their respective roles. This gives Indian companies a ready pool of talent who they can recruit in the later years.

Final Words

Make in India holds the promise to increase the size and productivity of Indian companies and boost both manufacturing investment and capabilities in India. Further initiatives in this direction, such as Aatmanirbhar Bharat, also push the manufacturing sector in a positive direction.

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Disclaimer: This article is written for educational purposes only. The securities mentioned are only examples and not recommendations.