Dixon Technologies opens a new factory in Chennai, manufacturing laptops for top brands, aiming to capture a significant share of India’s $10 billion IT market.
Dixon Technologies, an electronics contract manufacturer, is set to open a new factory in Chennai to produce laptops for four of the country’s top five notebook brands. The factory will be operational in 8-10 months. The company is already making notebooks for Acer. It has started the NPI (new product introduction) process for Lenovo laptops, with mass production set to begin in the third fiscal quarter of FY2025. The Chennai plant should be operational by Q4 or Q1 of the next fiscal year. The first phase of acquiring global brands as customers has already been achieved.
The company also plans to grow, primarily fueled by a steep ramp-up in volumes for Motorola and Xiaomi. It will make additional investments to manage its strong order book. 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.
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 this, the company will command 55-60% of the capacity required for smartphones in India.
Dixon Chairman and Managing Director Atul B Lall said that after achieving scale in assembling smartphones, the company’s next phase will be about deepening manufacturing by adding display modules, precision components and mechanics, and other modules as part of its capabilities.
