Is Dixon exploring new partnerships? The company is set to boost its facilities to meet surging demand for mobile phones, eyeing revenue growth with 400,000 units from key clients.
Dixon Technologies anticipates a surge in mobile phones and IT hardware demand, contributing to revenue growth. To meet the rising demand of approximately 400,000 units from a key client, the electronics contract manufacturer has expanded its facilities by an additional 150,000 square feet, according to a report by the Economic Times.
Atul B. Lall, Managing Director and Vice Chairman of Dixon Technologies, stated during a recent earnings call that the company is positioned for sustained revenue growth due to the overall strengthening demand and the addition of new customers across various business segments.
Lall mentioned that Dixon has a robust order book bolstered by acquiring Transsion’s manufacturing arm, ismartu. The order book includes brands under the Transsion Group, such as Tecno, Infinix, and iTel, along with the brand Nothing.
For Motorola, the company has consistently achieved a volume of 1 million units per month, and the order outlook remains positive, including promising export orders for North America.
Lall noted that there has been notable sequential growth in volumes for Xiaomi and Oppo during the second quarter of this year, and production for another major global brand is expected to commence by the end of November. The name of the brand is yet to be disclosed.
Additionally, Dixon is enhancing its manufacturing capabilities by producing display assemblies in partnership with the Chinese firm HKC. The company aims to begin production of display modules by the end of the first quarter or the beginning of the second quarter of the next fiscal year.
Lall also indicated that Dixon is exploring deeper manufacturing initiatives, focusing on precision components, mechanical parts, and camera modules. Studies and potential partnerships are ongoing.
