Amber Enterprises, Dixon Tech shares rise up to 3% as govt cuts import duty on mobile phones spare parts

Shares of mobile phones components makers rose up to 3% in early trade today after the Modi government cut import duty for these components to 10% from 15% earlier. The move is aimed to boost production of smartphones in India.

Shares of Amber Enterprises India Ltd climbed 3.18%  to Rs 4615.20 against the previous close of Rs 4472.65 on BSE. Market cap of the firm rose to Rs 15,125 crore. The company designs and manufactures wide range of products which includes RAC, RAC & Non-RAC components & HVAC solutions for mobility applications.

Similarly, shares of Redington Ltd soared 2.56% to Rs 181.95 against the previous close of Rs 177.40 on BSE. Market cap of the firm climbed to Rs 14,154 crore. The company's IT product offerings include PC's, laptops, tablets, notebooks, smart phones, desktops, printers, wearables and accessories, solar energy products, and lifestyle products such as gaming and consumer audio products.

Stock of another mobile spare parts maker Dixon Technologies rose 1.77% to Rs 5966.75 on BSE. Market cap of the firm rose to Rs 35,169 crore. The company is the largest home-grown design-focused and solutions provider engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.

Companies in the mobile phone spare parts sector have been calling for cuts on duties for nearly a dozen components to reduce the cost of making smartphones in India and level up the playing field with regional competitors such as China and Vietnam.

Mobile phone exports from India could triple to $39 billion over the next two years, from $11 billion in FY23, if the government reduces import tariffs on components, and eliminates them in some categories, the Indian Cellular and Electronics Association (ICEA) had said earlier.

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