The third round of the Production-Linked Incentive (PLI) Scheme for White Goods has witnessed a remarkable response, with 38 companies applying and committing a total investment of Rs 4,121 crore.
The application window closed on October 12, 2024, after being open for 90 days.
A significant highlight of this round is that 43% of the new applicants belong to the MSME (Micro, Small, and Medium Enterprises) sector, indicating a strong confidence among smaller businesses to become integral players in the manufacturing of components for Air Conditioners (ACs) and LED lights.
The PLI Scheme, launched by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to boost domestic manufacturing in India and make it a key player in global supply chains.
Among the applicants, eight existing beneficiaries of the scheme have pledged an incremental investment of Rs 1,285 crore, while 30 new entrants have committed Rs 2,836 crore to manufacture various critical components for ACs and LED lights across India.
Broad Geographic Reach
The investments proposed span 13 states, including Jammu & Kashmir and Odisha, with a total of 49 new manufacturing locations identified.
Manufacturing clusters are emerging in regions like Noida-Greater Noida in Uttar Pradesh, Neemrana and Bhiwari in Rajasthan, Aurangabad-Pune in Maharashtra, and Sanad, Gujarat, as well as Sri City in Andhra Pradesh.
In total, the PLI Scheme is expected to generate approximately 80,486 direct jobs and bring in investments in the component manufacturing ecosystem of the ACs and LED lights industry to about Rs 11,083 crore.
The anticipated total production value of these components is projected to reach Rs 1,81,975 crore.
Investment Distribution
In the bifurcation of investments, 21 applicants have targeted manufacturing components of ACs with a committed investment of Rs 3,679 crore, while 18 applicants are focusing on LED lights with an investment of Rs 442 crore.
Key components for ACs include copper tubes, aluminum stock for heat exchangers, compressors, and various control assemblies.
For LED lights, applicants plan to produce LED chip packaging, LED drivers, heat sinks, and other essential components.
Several applicants are also established vendors for major AC manufacturers like Daikin, Voltas, Blue Star, and LG Electronics, while others supply LED components to prominent brands such as Surya, Orient, and Crompton Greaves.
Industry Engagement and Future Outlook
The robust interest from the industry can be attributed to continuous engagement initiatives, including one-on-one meetings, vendor interactions in Sri City, and connections with Indian ambassadors abroad.
The scheme’s recent reopening reflects the industry’s appetite to invest further, driven by the growing market for ACs and LED lights in India.
The PLI Scheme for White Goods, with a budgetary outlay of Rs 6,238 crore, was approved by the Union Cabinet under the leadership of Prime Minister Shri Narendra Modi on April 7, 2021.
It aims to enhance domestic value addition in the manufacturing sector, increasing it from 15-20% to 75-80% by the end of the scheme’s tenure in 2028-29.
With 66 beneficiaries already selected under the PLI scheme, the future of India’s white goods manufacturing industry looks promising.
