The capital goods sector is one of the most critical segments for achieving the vision of Make in India. Soon after coming to power in 2014, the Modi government approved the National Capital Goods Policy to boost manufacturing activities. The policy, which was formulated with an aim to increase the production of capital goods, has given impetus to the industry, thus driving the economy. During the pandemic, several small and medium enterprises played a key role in meeting the demands of the medical industry.
According to the Confederation of Indian Industry, the capital goods sector is the base of many industries and is thus an essential component of manufacturing. It contributes around 12 per cent of the total manufacturing output and more than 1.5 per cent to GDP.
Gujarat Toolroom, which is engaged in the medical disposables, pharmaceutical, food, and beverage packaging sectors, has informed exchanges about completing a crucial import transaction with a Hong Kong-based entity.
The transaction included the procurement of conductive links and other related material. The raw material will be used to prepare for anticipated market demand.
The microcap stock is one of the top wealth creators in the pack on Dalal Street, delivering a multibagger return of more than 750 per cent in one year and over 2500 per cent in three years. Earlier in August, according to exchange data, foreign portfolio investors (FPIs) preferred stocks in the capital goods space and power sector. They were net buyers of capital goods stocks worth Rs 5,878 crore.
Earlier in March this year, the BSE-listed stock announced the sub-division of the face value of equity shares. The split took effect in the ratio of 10:1, meaning each equity share having a face value of Rs 10 was sub-divided into 10 equity shares of Rs 1 each.
In January this year, the government, in light of the economic slowdown caused by the pandemic, provided relief to the industry under the Export Promotion Capital Goods (EPCG) scheme. Under the scheme, imports of capital goods were allowed duty-free. Relaxation was available for healthcare, hotel, and educational sectors to cope with the negative impact of the pandemic.