Dixon Technologies is actively negotiating with several multinational electronics component companies to form joint ventures aimed at strengthening its position in component manufacturing. The company plans to start producing smartphones for two new global brands in the coming months, as the Indian government prepares incentives for domestic manufacturing across various component categories.
Atul Lall, Managing Director of Dixon Technologies, highlighted that the company is focused on non-semiconductor components for smartphones, such as display modules, and has already partnered with HKC for this. Dixon is also exploring financial joint ventures for other components like mechanical parts and die cuts.
Dixon has received approval from the Competition Commission of India to acquire a 50.10% stake in Ismartu India, a subsidiary of the Chinese company Transsion Technology. This acquisition adds approximately 10-12 million smartphone production capacity to Dixon’s existing facilities, which include plants for Samsung and other brands.
The company is expanding its operations by setting up a new campus in Chennai to manufacture laptops for four major notebook brands. This new factory is expected to start operations in 8-10 months. Dixon currently produces notebooks for Acer and is preparing to start making Lenovo laptops.
Lall noted that Dixon’s strategy involves starting with a major customer and scaling up production to gain operational leverage. He emphasized that while there are no specific duties for IT hardware like laptops, the company benefits from the Production Linked Incentive (PLI) scheme to support local manufacturing. Overall, Dixon is working to enhance its manufacturing capabilities and build partnerships in both the smartphone and IT hardware sectors.
