Dixon Gears Up for Smartphone Manufacturing Boom

Dixon Technologies India, a prominent contract electronics manufacturer, is poised to expand its production capacity driven by a robust order book from both existing clientele and new prospective contracts. Notably, the company has secured smartphone manufacturing contracts from two globally recognized brands.

These agreements are nearing finalization, signaling an imminent commencement of production within the next five months to meet the anticipated volume requirements. Presently, Dixon is enhancing its smartphone production capabilities, targeting an overall capacity of 30 million units spread across three of its four facilities located in Noida. Moreover, the construction of an expansive 8,60,000 sq. ft. factory in Noida is underway, expected to be completed within 2.5 years, further bolstering its manufacturing infrastructure.

In addition to catering to existing partnerships with Xiaomi and Motorola, Dixon is also diversifying its portfolio to include export markets for Motorola. The company's capital expenditure for the current fiscal year amounted to approximately Rs 440 crore, with earmarked investments of about Rs 400 crore for the upcoming fiscal year. By December 2023, Dixon had successfully produced 11 million smartphones, demonstrating its operational prowess and market demand.

Furthermore, Dixon Technologies has been designated under the production-linked incentive (PLI 2.0) scheme within the domestic hybrid category, committing a substantial capex of Rs 250 crore. Looking ahead, the company is gearing up to venture into the production of notebooks and laptops under new contracts, with targeted commencement scheduled for August or September 2024. This strategic expansion aligns with Dixon's vision to consolidate its position as a leading player in the electronics manufacturing sector while capitalizing on emerging market opportunities and technological advancements.

News by Rahul Yelligetti