Dixon Technologies invests Rs 1500-1800 Crore to boost component mfg

Dixon Technologies India plans to invest between Rs 1,500 to 1,800 crore over the next three years to expand its production capacity and component manufacturing. This year alone, the company will invest over Rs 500 crore, with a significant portion potentially allocated for major acquisitions. Around 60-65 percent of this year's capital expenditure will be dedicated to expanding mobile phone production capacity, Rs 180-200 crore for display modules, and the remainder on other products. These investments will be funded through internal accruals based on cash flow.

The company's strategy includes backward integration into components, enhancing its capabilities and engagement with existing customers. In addition, Dixon is eager to venture into non-consumer electronic manufacturing services and is scouting for land to build a new plant dedicated to producing electronic modules for electric vehicles. The firm is also exploring opportunities in robotics, automation, and precision engineering.

Last week, Dixon entered into a term sheet agreement with HKC Corporation to establish a joint venture for manufacturing components such as liquid crystal modules, TFT-LCD modules, and assembling end products like smartphones and TVs. This JV will also facilitate the sale of HKC-branded end products in India, broadening Dixon's market presence and product offerings.

Dixon has achieved a production capacity of 45 million smartphones and 40 million feature phones, alongside holding the largest television manufacturing capacity in India. Additionally, it has developed the capability to meet 10 percent of the country's refrigerator demand. The company has also expanded into the manufacturing of laptops, tablets, and IT hardware products, further diversifying its product portfolio.

These strategic moves underscore Dixon's commitment to strengthening its manufacturing prowess and expanding its market footprint. By leveraging its internal resources and forming strategic partnerships, Dixon aims to solidify its position as a leading player in the electronics manufacturing sector.

News by Rahul Yelligetti