There has been a lot of talk on the street about EMS companies, but the focus has largely been on higher-end products. For instance, an EMS – electronics manufacturing services – company that bagged a contract to make a phone saw its market cap rise by half-a-billion dollars. Now, there is another end of the market which has been largely built using Chinese imports – with an Indian brand stamped on the products. To give an example: An unlisted water purifier company sends its product with user manuals in Chinese. There is, however, a creeping localization happening in this segment. The question is: Has the localization achieved enough scale to be recognized by the street? And will these stocks – big wealth creators at one point of time – get their shine back?
