- The company currently has ties with Acer, Lenovo, & HP in the IT hardware manufacturing space
Debasis Mohapatra
Bengaluru, 21 September 2024
Dixon Technologies is aiming to replicate its success in the mobile manufacturing space within the IT hardware segment.
“This (IT hardware) is also going to be a significant engine of our growth in the coming years. What we, as a team, have been successfully able to execute on the mobile front, we aspire to do the same in the IT products,” MD & Vice Chairman of Dixon Technologies, Atul Lall has said in the Q1FY25 analyst call.
In the laptops and IT hardware products segment, the company has already tied up with global brands like Lenovo, and Acer for manufacturing their devices in India.
“We have already finalized contracts with Lenovo and Acer. We are already manufacturing for Acer. And we started the NPI process for Lenovo notebooks and the mass production for Lenovo will commence in Q3 of this fiscal,” Lall has said.
“We have also got two new customers which are the largest global brands for notebooks. We’re in the process of signing the definitive agreements. We target to start production for these two global brands in Q1 of next fiscal. With this, four customers — with us, we have the top four customers out of the top five global brands operating in the country,” he has said.
The company expects to start manufacturing in a new campus in Chennai towards the beginning of next financial year.
Notably, Dixon Technologies’ arm, Padget Electronics signed a Memorandum of Understanding (MoU) to manufacture HP laptops, personal computers, and all-in-one systems in Tamil Nadu this month. The first HP laptop produced at the Tamil Nadu facility is expected to be shipped by February 2025.
According to the company, which is a beneficiary of Indian government’s PLI (Production Linked Incentive) scheme, the market for IT products is pegged at around $10 billion (around Rs 80,000 crore with a production value are around Rs 50,000 crore.
“I feel that on an annualized basis, (manufacturing revenue from IT hardware) to start with around Rs 3,500 crore, Rs 4,000 crore and then it will ramp up,” Lall has said.
Share price of Dixon Technologies closed 1.55% up at Rs 13,961.70 on Friday in NSE. The company’s share price has increased close to 100% in the last six months.
