Dixon is in advanced talks for a joint venture with electronics component companies, aiming to boost its production capacity and expand its market reach.
In a recent stride to bid in the nascent component manufacturing ecosystem, Dixon Technologies is actively negotiating with several multinational electronics component companies to form joint ventures to strengthen 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.
Dixon has received approval from the Competition Commission of India to acquire a 50.10% stake in Ismartu India, a Chinese company Transsion Technology subsidiary. This acquisition will add 10-12 million smartphone production units to Dixon’s existing capacity, including facilities for major brands like Samsung.
Furthermore, Dixon is strategically setting up a new plant in Chennai to manufacture laptops for four major notebook brands. This factory, expected to be operational within 8-10 months, is a key part of Dixon’s expansion plans. Dixon currently produces notebooks for Acer and will soon start for Lenovo.
Managing Director Atul Lall emphasised that the company’s focus on non-semiconductor smartphone components, including display modules, is a testament to Dixon’s expertise in this area. Dixon has also partnered with HKC and is exploring joint ventures for components such as mechanical parts and die cuts.
Dixon’s strategy involves partnering with significant customers and scaling production to maximise operational efficiency. The company benefits from the Production Linked Incentive (PLI) scheme, which supports local manufacturing despite the lack of specific duties on IT hardware.
