Dixon expects 12% sales growth this financial year

Indian electronics manufacturer Dixon Technologies, supplier to brands like Samsung and Xiaomi, expects revenue to rise 12% in the current financial year and is considering setting up a plant in Tamil Nadu state, a top executive told Reuters on Monday.

Dixon’s Managing Director Atul Lall said the company is “seriously considering” investing in Tamil Nadu in the next 12-18 months. It currently has factories in three Indian states but not in Tamil Nadu, a hub for electronics and automotive manufacturing and home to major production facilities of Apple suppliers like Foxconn and Pegatron.

Lall was speaking to Reuters on the sidelines of an electronics event in the southern Indian state.

His forecast for sales growth of 12% in the financial year ending in March 2023, to about $1.45 billion, would mark a sharp slowdown from 66% growth in the previous financial year.

Revenue from contract manufacturing of telecom devices, smart watches and wireless products like ear buds is likely to grow 15-20%, Lall added.

Dixon’s share price has been under pressure in recent months due to slowing sales growth in previous quarters. Reuters