Dixon Technologies eyes high growth driven by mobile division

Dixon Technologies (India) Ltd. is looking at high growth with its mobile phone manufacturing division serving as the primary driver, according to Vice Chairman and Managing Director Atul Lall.

“Mobile phones are the largest trigger for our growth,” Lall told NDTV Profit in an interview. “The opportunity pool in mobile is the highest.”

Apart from mobile phones, Lall sees opportunities in IT products, where the company has trade agreements with two big global brands. Production for one of them is going to start in April–May, and for the other in August–September.

The consumer-electronics maker brand’s wholly owned subsidiary, Padget Electronics Pvt., has signed a contract manufacturing agreement with Compal Smart Device India Pvt. to manufacture mobile phones.

Lall said the tie-up with Compal is large, and it’s to manufacture high-end mobile devices. The production will start in August–September of the next financial year.

The high-end phones will first be produced for the domestic market and then for exports, he added.

On Dixon Technologies (India) Ltd.’s new washing machine manufacturing factory at Dehradun, he said it’s going to be one of India’s largest factories with a production capacity of 24 lakh washing machines per annum.

The production at this new facility has already started, and they have a healthy order book for 90% of its production, said Lall.

Dixon Technologies expects a 25–35% growth in FY25 for the home appliances business. Production of washing machines is expected to close at 19 lakh by the end of FY24.

The consumer electronics maker’s factories for refrigerators have also started production and the contract manufacturer expects high growth in this segment as well.

As a beneficiary of five production-linked incentive schemes of the government, Dixon Technologies plans to focus on execution, and customer acquisition. The threshold investment requirement under the PLI scheme has already been met, he said.

For the semiconductor segment, Lall said the company will focus on vertical building and see how that pans out. NDTV Profit