Dixon Technologies on an aggressive growth path with a string of JVs to scale its revenues

Dixon partners with Imagine Marketing’s BoAt brand for bluetooth enabled audio devices.

Dixon Technologies is the leading electronic manufacturing services (EMS) space in India. The company enjoys leadership in the Indian market requirement of LED TVs, LED bulbs, while increasing its footprints in the mobile. The homegrown electronic major is among the largest beneficiary of PLI Schemes by the Government has proactively undertaken an aggressive growth path to that effect. The ambitious partnership of Dixon Technologies with Acer India to make laptops under “make in India” initiative is further viewed as strengthening its market.

It has emerged as the only company to have achieved the capex and revenue requirement under the Mobile Phone PLI incentive. In the telecom sector, it has entered into a JV with Bharti Group with Airtel as the anchor customer. In November 2021, it began manufacture of Fully Automatic Washing Machine for BSH Household Appliances Manufacturing Pvt Ltd( a European Company).

Recently, it has also announced its 40:60 JV with a Japanese Company Rexxam Co. Ltd for the manufacture of Printed Circuit Boards for Air-Conditioners (PCBA) for domestic and international markets under the PLI Scheme.

The proposed 50:50 JV with Imagine Marketing Pvt Ltd will undertake the design and manufacturing of Wireless Audio Solutions in India & the JV partners will co-invest in the evolving Indian mobile accessory market. The equity shares of the proposed JV Company will be issued to the Company and Imagine in equal proportion i.e. 50:50.

Dixon has been manufacturing wearables for Imagine’s boat since FY 2020-21, and the proposed JV is viewed as a step further in their business relationship.

The company is planning a capex of Rs 400-450 crore to enhance its revenue significantly, given the tailwind by the PLI schemes. The revenues projections by the management are quite strong at Rs 11500 to Rs 12000 crore for the current financial year while Rs 17000 to Rs 17500 crore is being targeted for the next financial year.

The shares of Dixon Technologies closed for the day in red at Rs 5259 with a loss 2.4% largely on account of weak global clues and its effect on Indian market sentiment.