Dixon shares get a 3% boost after India curbs colour television imports

Dixon shares get a 3% boost after India curbs colour television imports
Dixon
  • Dixon Technologies shares were trading over 3% higher on July 31 after the Indian government imposed restrictions on the import of colour television sets.
  • The total imports under the restricted category were worth $781 million in the last fiscal year.
  • The government also added that it would separately issue the procedure for the grant of licence.
  • Check out the latest news and updates on Business Insider.
The shares of the electronic manufacturer, Dixon Technologies, were trading over 3% higher on July 31 after Indian government on Thursday (July 30) decided to impose restrictions on the import of colour television sets.

Dixon shares get a 3% boost after India curbs colour television imports

As per the recent amendment, the imports of TVs in certain categories will now require a licence from the authorities. “Import policy of colour television sets under HS code 8528 7211 to 8528 7219 is amended from ‘free’ to ‘restricted’,” the Directorate General of Foreign Trade (DGFT) said in a notification.

HS code stands for Harmonized System, which was developed by the World Customs Organization to track exports worldwide. The government also added that it would separately issue the procedure for the grant of licence.
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The total imports under the restricted category were worth $781 million in the last fiscal year. Out of which Vietnam accounted for $428.37 million and China for $292.48 million.

‘Make in India’ boost for Dixon

This new amendment will boost Dixon’s business, whose 45% of the total revenue also comes from the consumer electronics segment. The company manufactures orders for brand owners like Samsung, Toshiba, LG, and many more.

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On the back of the India-China standoff, it was already seeing a growing demand for ‘made in India’ products. The stocks of the electronic manufacturer, Dixon Technologies had doubled investor wealth since March 23, when its peers were experiencing the lockdown setback.

And, then Samsung also decided to expand its partnership with Dixon Technologies, which led to further gains for the company. The company said it would bring down the number of TVs imported from its plants in other countries and manufacture almost 85-90% of the televisions locally to sell in India.

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