Dixon Technologies ramps up smartphone production as orderbook soars
Dixon Technologies, through its wholly-owned subsidiary Padget Electronics, recently invested ₹256 crore in setting up a state-of-the-art smartphone manufacturing facility.
Electronics manufacturer Dixon Technologies confirmed that its orderbook for mobiles is exceptionally healthy, attributing this success to major customer requisitions that prompted the establishment of a new manufacturing facility.
"We've had a couple of major customer requisitions for which this new facility has been set up," Atul Lall, MD, Dixon Technologies told CNBC-TV18. He went on to reveal that more customer requisitions are in progress, expressing optimism about concluding them in the upcoming quarter, specifically Q4 of the fiscal. Lall also announced the initiation of Nokia exports, with consignments already being shipped out of the country since December.
Dixon Technologies, through its wholly-owned subsidiary Padget Electronics, recently invested ₹256 crore in setting up a state-of-the-art smartphone manufacturing facility. This facility has commenced production, focusing on smartphones for Xiaomi, boasting an impressive annual production capacity of 25 million units.
Lall also added that the addition of the facility takes their total smartphone manufacturing capacity to 70 million.
Lall emphasised the company's diversification strategy, highlighting the increasing importance of Original Design Manufacturing (ODM) in absolute terms. Dixon Technologies is set to witness a significant uptick in ODM revenues, with a focus on solutions in televisions, lighting, washing machines, and the imminent introduction of refrigerators.
Lall also unveiled plans for the company's foray into telecom devices, where Dixon Technologies will own the intellectual property and provide unique solutions. Currently, the company manufactures about 5 million television units in a month.
"While the ODM revenues will see substantial growth in absolute terms, the prescriptive manufacturing of IT products will be a more significant driver in terms of percentage," Lall explained. He touched upon the stabilisation of operations at the new Kopparthi campus, ensuring stakeholders that margins would be restored from the current quarter onward.
On the flip side, Lall acknowledged the gradual demand in the lighting sector, suggesting that it might take some time for substantial growth.
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