With an initial investment of Rs 250 Crore, the company is looking forward to set-up the plant in the coming eight to ten months.
Home-grown electronics contract manufacturer Dixon Technologies aims to form a joint venture with China’s HKC with a 74 percent stake. With an initial investment of Rs 250 Crore, the company will manufacture the display modules for tablets, laptops, and smartphones.
Sources familiar with the matter told the media that the company has also requested security and investment approval from the government. Once the government approves the same, the company will set up the manufacturing plant within eight to ten months. The unnamed source added that during the project’s first phase, the JV’s investment will be around Rs 250 crore, which will further escalate once the unit expands.
A couple of months back, Dixon acquired most of the shares in China’s Transsion Holdings, selling phones in India under brands such as Tecno, Itel, and Infinix. The JV with HKC will be India’s second partnership with a Chinese company that will be in rapid succession. Three years after the COVID-19 pandemic, the alliances and the JVs started appearing after the government of India recently allowed new Chinese companies to operate in India with certain regulations. Therefore, the inter-ministerial panel in the nation has approved five to six investment proposals from Chinese companies. The government has already approved a partnership between Huaqin Technology and Micromax, and Luxshare.
According to the government, approvals are only granted if the Chinese companies have minority shares. In an effort to boost the industry, the government has also ensured that no Chinese executives will hold leadership positions in any JVs in India.
Founded in 1993 by Sunil Vachani in Noida, Dixon has now emerged as one of the country’s largest electronics contract manufacturers. It is one of the first EMS companies in India to be approved for the IT hardware PLI scheme in 2021 for producing large-scale electronics. Well-known for manufacturing washing machines, phones, TVs, and refrigerators of various foreign brands, Dixon has taken a significant leap in catering 55-60 percent of the Indian market.
With a revenue of Rs 17,960 crore (FY24), Dixon has announced its foray into the burgeoning electric vehicle market in January this year. With an investment of Rs 1800 Crore for the first three years, the company has proclaimed to set up a new manufacturing unit to produce electronic modules for EVs. As a leading electronics manufacturer, Dixon is now looking forward to exploring new product categories with higher margins.
