Mathew Job, CEO of Crompton Greaves Consumer Electricals, said that the production-linked incentive (PLI) scheme could strengthen the company’s presence in the LED segment, but was not fundamental to the plans the company had already drawn up.
“We already manufacture quite a large portion of our LED lighting products in-house,” he said in an interview to CNBC-TV18.
Under the government's PLI scheme, around Rs 6,200 crore has been set aside for white goods including products like air-conditioners and LED lights.
“We are not just looking at it in context of the PLI programme. As a company we have prepared or are also in the process of preparing, what I call as medium-term sourcing footprint, which requires us to put in additional capacity in the next 3-4 years. This programme could add or could make that even stronger, but we do not see at this moment a fundamental requirement to change what we have planned,” he said.
Job said the industry was awaiting further details on the scheme. “At the moment we are trying to get a greater clarity in terms of how this PLI scheme is going to work, what kind of incentives are available, what are the conditions that need to be met,” he said.
He cautioned that higher raw material prices could slow down the pace of recovery being seen right now.
“At the moment we see significant run up of commodity cost; plastic cost has run up in the last few weeks. So that is going to create some headwinds for the recovery that seems to be happening on the broad scale,” he said.
According to him, availability of raw material continues to be an issue.
For entire interview, watch video