Dixon Technologies to Manufacture Xiaomi Phones at Noida Plant

In a transformative move to enhance local smartphone manufacturing, Dixon Technologies (India) Ltd. has inaugurated a smartphone manufacturing plant in Noida. This development reflects Dixon's commitment to fortifying India's capabilities in producing cutting-edge smartphones.

Spanning an impressive 3 lakh sq ft., the newly established plant is poised to emerge as a major hub for smartphone production. With an annual capacity to manufacture 25 million phones, the facility stands as a testament to India's growing prowess in the global smartphone manufacturing landscape.

Alliance with Xiaomi

Dixon Technologies has forged a partnership with Xiaomi Corp.'s Indian arm, signaling a paradigm shift in the dynamics of smartphone production. Under a comprehensive five-year contract, Dixon will manufacture the smartphones for Xiaomi, aligning with the Indian government's call for increased local production by Chinese brands.

This move aligns with the broader trend where Chinese brands, including Xiaomi, respond proactively to governmental encouragement to produce locally and cater to both domestic and international markets. While Vivo, Oppo, and OnePlus have chosen to keep their manufacturing operations in-house. The ripple effect may impact previous suppliers, such as Foxconn Technology Group’s Bharat FIH Ltd. and DBG Technology Co.

Dixon Technologies aims to export 30% of the total smartphone production from its Noida plant over the next two to three years. This strategic emphasis on exports highlights the potential for Indian manufacturers to play a pivotal role in the global smartphone supply chain.

Beyond its collaboration with Xiaomi, Dixon Technologies continues to be a key player in the smartphone manufacturing landscape. The plant will not only produce smartphones for Xiaomi but also contribute to the manufacturing of Jio phones, showcasing the company's diverse brand partnerships with industry giants like Motorola and Nokia.

The collaboration between Xiaomi and Dixon Technologies aligns seamlessly with the broader government initiative to curtail imports and involve more local companies in the entire supply chain, distribution, and manufacturing processes. This move highlights the government's vision to bolster India's self-reliance in the dynamic tech industry.

Stock Performance

Dixon Technologies' stock has been on the rise, jumping by around 6% in the last month. Over the past six months, it has outpaced the Nifty50 index, boasting an impressive 41.04% return compared to the index's 8.90%. Zooming out to a one-year time the stock has gained a 29%. The real highlight, though, is Dixon's exceptional performance over the past five years, delivering a remarkable 1348% return.