Dixon Technologies jump six per cent post colour TV import ban
Dixon Technologies jumped nearly six per cent during the early trade on Friday while trading at Rs 7,499, supported by the ban on import of colour television.
The company generates nearly 48 per cent revenue from the consumer electronics segment, which mainly comprises of LED TVs. During Q4FY20, the company added three new customers for this business including Toshiba. The company is in a process to enhance LED TV capacity to 4.4 million units in FY21 from 3.6 million currently.
The government on Thursday banned the import of colour television. This move aims to boost domestic manufacturing of television (TV) and reduce imports of non-essential items from countries like China.
Directorate General of Foreign Trade (DGFT) said in a notification, "The import policy of colour television has been changed from free to ban."
This import ban is on the colour television sets with screen sizes ranging from 36 centimeters to more than 105 centimeters, as well as LCD television sets with screen sizes less than 63 centimeters.
To put any goods in the restricted import category means that the importer of the said goods will have to get a licence from DGFT of the Ministry of Commerce for import.
Major countries exporting TV to India include China, Vietnam, Malaysia, Hong Kong, Korea, Indonesia, Thailand, and Germany. India imported colour TVs worth USD 781 million in 2019-20. Imports from Vietnam and China were USD 42.8 million and USD 293 million, respectively in the last financial year.
Other companies, which are also engaged in a similar type of business, are also trading in green in today’s session. MIRC Electronics jumped 5 per cent to Rs 6.46, BPL jumped 5 per cent to Rs 18.45 and Calcom Vision jumped 5 per cent to Rs 26.60 on BSE.