StartupTalky

Tag: IT hardware

  • Dixon wants to Construct a $3 Billion Display Fabrication Plant in India

    Dixon Technologies, an electronics company, is in talks to establish a $3 billion display fabrication plant in India as part of its expansion into the electronics components market. During the Q3 results call, Dixon’s managing director, Atul Lall, made the announcement. He claimed that the giant from Noida is in negotiations to develop this facility with a multinational tech company. According to Lall, the company is actively negotiating with a worldwide technological partner to establish a top-tier display factory, which is a crucial component in the consumer electronics, IT hardware, and mobiles sectors. The industrial giant hopes to reduce costs, gain control over the supply chain, and localise output via this entity. In order to proceed with this initiative, Dixon is also awaiting the center’s guidelines for the India Semiconductor Mission (ISM) phase 2.

    How Firm Plans Utilise Funds?

    Regarding the capital investment, Lall stated that approximately $3 billion will be invested in the project at first, with 60% going towards televisions and 15%–12% going towards the production of mobile phones. It’s important to remember that the business wants to use government funding to support this endeavour. In terms of finances, Dixon reports that its consolidated revenues were INR 10,461 Cr at the end of the December 2024 quarter, up 117% from INR 4,821 Cr in the same quarter of the previous fiscal year.

    More Details About the Proposed Manufacturing Unit

    When it comes to producing devices and products, India’s electronics manufacturing sector has matured. A robust component ecosystem is necessary to maintain and expand. In addition to mechanical and other modules, the company has also introduced a display module that will be operational in the upcoming two to three quarters, according to Lall.

    In collaboration with HKC, the firm has also decided on a location for display manufacture, and it anticipates that production will begin in the first or second quarter of the upcoming fiscal year. Trial production of Dixon’s specialised IT hardware manufacturing facility is scheduled to start in February, and mass production is scheduled for the first quarter of FY25–26. Devices for Asus and HP will be produced in large quantities by the facility. According to Lall, mass production for Acer and Lenovo has already started.

    India’s PLI Scheme Attracting Players

    At the same time, Dixon and manufacturing giant Foxconn have recently exhorted Indian authorities to settle their outstanding dues, which amount to INR 700 crore. This development has occurred recently. These incentives are available to both giants through the Centre’s production-linked initiative (PLI) program. Dixon has recently expressed optimism that the nation’s manufacturing will increase. For example, it signed an agreement with Vivo India last month to establish an OEM plant through a joint venture. Dixon’s subsidiary Padget Electronics and HP India inked a memorandum of understanding (MoU) in September 2024 to produce laptops and personal computers (PCs).

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  • Dixon Technologies Announces the Creation of Dixon Teletech, A Wholly-Owned Subsidiary

    Dixon Technologies, a manufacturer of electronics hardware, announced on 5 November 2024 that Dixon Teletech, a wholly-owned subsidiary, would be incorporated to produce parts for IT hardware products. With orders from the top four laptop brands in the nation—HP, Lenovo, Acer, and Asus—the contract manufacturer is establishing facilities to increase laptop assembly under the production-linked incentive plan for IT hardware.

    The company stated in an exchange filing that the wholly owned subsidiary was established with the purpose of manufacturing and dealing in a variety of information technology products, including IT hardware components, related products, equipment, and their components.

    How Does the New Arm Work?

    Dixon Teletech was formally established on September 28, 2024, and has already received a seed capital of INR 1 lakh from its parent firm for 10,000 shares at a price of Rs. 10 apiece. Dixon Teletech is prepared to manufacture a variety of IT hardware, components, and equipment, with an emphasis on increasing local laptop production.

    Dixon is establishing revenue targets with these new alliances, hoping to generate a healthy INR 3,500 crore from its IT hardware division by FY26 and a significant INR 48,000 crore over the following six years.

    Changing Regulations and the Need for Domestic Technology

    With the existing authorisation framework expiring in December 2024, India’s import regulations and policies for IT hardware are poised to become more stringent. After that, beginning in January 2025, importers will require new authorisations. Given that more international IT businesses are looking to India as a production base, Dixon’s growth couldn’t come at a better moment as global players explore Indian manufacturing centres.

    Although Dixon Technologies’ stock is down 1.35% as of now at INR 14,240.00, the company has demonstrated remarkable growth, rising 120.40% so far this year and 170.37% in the last 12 months. Dixon’s decision is a symbol of India’s growing potential in the global IT hardware industry as well as growth for the business. Given Dixon’s track record of meeting goals and the PLI scheme’s support for local production, Dixon Teletech has the potential to revolutionise the industry. This is a significant step in promoting local businesses and lowering dependency on imports.

    About Dixon Technologies

    In India, Dixon Technologies (India) Limited has been at the forefront of the electronic manufacturing services (EMS) market. Dixon was established in 1993 and began producing colour television in 1994. Since then, the company has grown to include a number of electronics sub-sectors.

    The biggest domestic design-focused solutions company in India, Dixon Technologies (India) Limited, manufactures goods for the consumer durables, lighting, and mobile phone industries. Consumer electronics like LED TVs, home appliances like washing machines, lighting items like LED bulbs, tubelights, and downlighters, mobile phones, CCTV & DVRs, wearable technology, and refrigerators are just a few of their varied product offerings. Dixon also offers reverse logistics solutions, such as LED TV panel repair and refurbishment services.

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