Dixon Technologies: Scaling heights in global electronics manufacturing with PLI

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Dixon Technologies: Scaling heights in global electronics manufacturing with PLI

Dixon Technologies: Scaling heights in global electronics manufacturing with PLI

Industry News
Jan 03,24

Despite catering to Taiwanese and Chinese clients, Dixon strategically aligns itself with the Indian government's policy through both contracts falling under the revamped production-linked incentive (PLI) scheme for IT products.

Dixon Technologies: Scaling heights in global electronics manufacturing with PLI

Dixon Technologies is currently buzzing with activity as it constructs a new facility in Noida with the ambitious goal of manufacturing 1.3 million laptops for Acer, a Taiwanese PC maker. The tight deadline for the facility to be operational is set at four months, and the company's momentum is poised to escalate further. In a recent development, Dixon secured a similar contract from Lenovo, a prominent Chinese personal computer manufacturer and the third-largest IT hardware brand in India, to assemble laptops and notebooks.

Sunil Vachani, the executive chairman, envisions Dixon's ascent in the global market. He aims to conclude the current calendar year with Dixon positioned as the 15th or 16th largest electronic manufacturing services (EMS) player globally. The ambitious plan includes reaching the top 10 in five years and the top five in a decade, surpassing their 21st rank in 2022.

As the second-largest EMS player in India, according to Statista, Dixon has capitalised on the PLI scheme to scale up, with Vachani emphasising its role as a stepping stone for the company to become a global champion, both in local sales and exports from India. This strategy has found favour in the stock market, evident in Dixon's stock price surging from Rs 2,929 on March 1 to Rs 6,377 on the BSE.

Under the PLI scheme, Dixon commits to generating Rs 48,000 crore in production revenues over six years. Kotak Institutional Research forecasts that Dixon is eyeing a 17 per cent share of the IT products market by 2030. Vachani highlights the potential of a Rs 10,000 crore annual business by securing even a modest 10 per cent share in the estimated $10 billion Indian laptop market.

Dixon's diversification is apparent as it engages in five of the 14 PLIs for which it is eligible, covering mobile devices, IT products, refrigerators, LED components, and telecom networks. The company's multifaceted approach positions it as a key player in India's electronic manufacturing landscape with global aspirations.

Source: rediff.com