Dixon Technologies to open factory in Chennai, will manufacture laptops

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Electronics contract manufacturer Dixon Technologies is close to opening a new factory in Chennai where it will be making laptops for four of the top five notebook brands in the country. The factory is set to be operationalised in 8-10 months, a top company executive said.“We have the top four customers out of the top five local brands operating in the country. For this, a new campus is being planned in Chennai. The site has been identified and the resources have been acquired,” said Atul B Lall, chairman and managing director, Dixon Technologies at the company’s recent earnings call.

“We target to start this Chennai facility in the next 8-10 months, so this is also going to be a very significant engine of our growth..What the team has been able to do in the mobile front, we aspire to do the same for IT products,” he added.

The contract manufacturer, among the country’s largest, said it is already making notebooks for Acer and has started the NPI (new product introduction) process for Lenovo laptops, with mass production set to commence in the third fiscal quarter of FY2025.

“The Chennai plant should be operational by Q4 of the current fiscal or Q1 of next fiscal. The first phase of acquiring global brands as our customers has already been achieved,” Lall said, adding that the addressable market for IT products is almost $10 billion in India.

Dixon clocked Rs 6,588 crore in quarterly revenues, growing 101% on-year in the June quarter, with a 109% on-year increase in net profit at Rs 140 crore, majority of which came from the company’s mobile and EMS (electronics manufacturing services) division.

The growth was primarily fueled by a steep ramp up in volumes for Motorola and Xiaomi, Lall said, adding that the company will be making additional investments as required to manage its strong order book.

“There is strong growth in volume for Motorola smartphones with a monthly order book of almost 9-10 lakhs per month including a decent order book for exports. Xiaomi business is also ramped up and now we are clocking around 7 lakhs per month from July, and higher volumes are expected in coming months of the festive season,” Lall said.

Around 35% of Motorola phones made by Dixon are exported to the US and other countries, the company said, adding that its partnership with Chinese ODM (Original Design Manufacturer) Longcheer is clocking 4-4.5 lakhs of production volumes, which could be ramped up to 7 lakhs a month going forward.

Two more global Android handset brands will be added as customers for the company, Lall said.

The company is also set to complete its acquisition of Ismartu, the manufacturing arm of Transsion Holdings, pending approval from the Competition Commission of India, following which the company will command 55-60% of the capacity required for smartphones in India.

Lall said that after achieving scale in assembling smartphones, the company’s next phase is going to be about deepening manufacturing by adding display modules, precision components and mechanics, and other modules as part of its capabilities.



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