Dixon Technologies to Open Factory for Laptop Manufacturing
ECONOMY & POLICY

Dixon Technologies to Open Factory for Laptop Manufacturing

Dixon Technologies is nearing the launch of a new factory in Chennai aimed at manufacturing laptops for four of the top five notebook brands in India. The facility is expected to become operational within the next 8-10 months, as confirmed by a senior company executive.

Atul B Lall, Chairman and Managing Director of Dixon Technologies, announced during the company?s recent earnings call, ?We have the top four customers out of the top five local brands operating in the country. For this, a new campus is being planned in Chennai. The site has been identified and the resources have been acquired.?

Lall highlighted the strategic importance of the Chennai facility, stating, ?We target to start this Chennai facility in the next 8-10 months, so this is also going to be a very significant engine of our growth. What the team has been able to do in the mobile front, we aspire to do the same for IT products.?

Currently, Dixon Technologies manufactures notebooks for Acer and has initiated the new product introduction (NPI) process for Lenovo laptops, with mass production expected to commence in the third fiscal quarter of FY2025. ?The Chennai plant should be operational by Q4 of the current fiscal or Q1 of next fiscal. The first phase of acquiring global brands as our customers has already been achieved,? Lall noted, adding that the addressable market for IT products in India is nearly $10 billion.

In the June quarter, Dixon Technologies reported a 101% year-on-year growth in quarterly revenues, reaching Rs 6,588 crore, with net profit surging 109% year-on-year to Rs 1.4 billion. This growth was primarily driven by increased volumes in the mobile and electronics manufacturing services (EMS) divisions, with significant contributions from Motorola and Xiaomi.

Lall detailed the company?s performance, mentioning, ?There is strong growth in volume for Motorola smartphones with a monthly order book of almost 9-10 lakhs per month, including a decent order book for exports. Xiaomi business is also ramped up, now clocking around 7 lakhs per month from July, with higher volumes expected in the festive season.?

Approximately 35% of Motorola phones produced by Dixon are exported to the US and other countries. The company?s partnership with Chinese Original Design Manufacturer (ODM) Longcheer is also producing 4-4.5 lakh units per month, which could increase to 7 lakh units going forward.

Lall revealed that Dixon Technologies would soon add two more global Android handset brands to its customer base. Additionally, the company is set to complete the acquisition of Ismartu, the manufacturing arm of Transsion Holdings, pending approval from the Competition Commission of India. This acquisition would enable Dixon to command 55-60% of the capacity required for smartphones in India.

Dixon Technologies is nearing the launch of a new factory in Chennai aimed at manufacturing laptops for four of the top five notebook brands in India. The facility is expected to become operational within the next 8-10 months, as confirmed by a senior company executive. Atul B Lall, Chairman and Managing Director of Dixon Technologies, announced during the company?s recent earnings call, ?We have the top four customers out of the top five local brands operating in the country. For this, a new campus is being planned in Chennai. The site has been identified and the resources have been acquired.? Lall highlighted the strategic importance of the Chennai facility, stating, ?We target to start this Chennai facility in the next 8-10 months, so this is also going to be a very significant engine of our growth. What the team has been able to do in the mobile front, we aspire to do the same for IT products.? Currently, Dixon Technologies manufactures notebooks for Acer and has initiated the new product introduction (NPI) process for Lenovo laptops, with mass production expected to commence in the third fiscal quarter of FY2025. ?The Chennai plant should be operational by Q4 of the current fiscal or Q1 of next fiscal. The first phase of acquiring global brands as our customers has already been achieved,? Lall noted, adding that the addressable market for IT products in India is nearly $10 billion. In the June quarter, Dixon Technologies reported a 101% year-on-year growth in quarterly revenues, reaching Rs 6,588 crore, with net profit surging 109% year-on-year to Rs 1.4 billion. This growth was primarily driven by increased volumes in the mobile and electronics manufacturing services (EMS) divisions, with significant contributions from Motorola and Xiaomi. Lall detailed the company?s performance, mentioning, ?There is strong growth in volume for Motorola smartphones with a monthly order book of almost 9-10 lakhs per month, including a decent order book for exports. Xiaomi business is also ramped up, now clocking around 7 lakhs per month from July, with higher volumes expected in the festive season.? Approximately 35% of Motorola phones produced by Dixon are exported to the US and other countries. The company?s partnership with Chinese Original Design Manufacturer (ODM) Longcheer is also producing 4-4.5 lakh units per month, which could increase to 7 lakh units going forward. Lall revealed that Dixon Technologies would soon add two more global Android handset brands to its customer base. Additionally, the company is set to complete the acquisition of Ismartu, the manufacturing arm of Transsion Holdings, pending approval from the Competition Commission of India. This acquisition would enable Dixon to command 55-60% of the capacity required for smartphones in India.

Next Story
Equipment

Wilo Pumps Boost Efficiency in India’s Metro Stations and Airports

As India’s metro stations and airports handle millions of passengers daily, ensuring seamless operations is critical. One key factor in keeping these transport hubs running smoothly is pump technology. Wilo, a global leader in pump solutions, plays a vital role in water supply, drainage, fire safety, HVAC, and wastewater management in these high-traffic facilities.Metro stations and airports require a steady water supply for drinking, restrooms, cleaning, comfort cooling and fire fighting. Wilo pumps provide reliable water flow, ensuring uninterrupted service even during peak hours. Addition..

Next Story
Products

VEKA Acquires 100% Control of uPVC Business in JV NCL VEKA

VEKA Germany, a global leader in the uPVC profile industry, has successfully acquired 100% ownership of the Company, marking VEKA’s unwavering commitment to the Indian market and its confidence in India’s rapidly expanding construction, real estate, and infrastructure sectors. With VEKA now holding 100% control, following a takeover of the remaining 50% stake previously held by NCL and other shareholders.Since its launch in 2009, the company has become India’s largest producer of uPVC profiles for doors and windows. VEKA holds largest market share across 130 cities, with a strong product..

Next Story
Infrastructure Transport

Titagarh Rail Systems Wins Adani Cement Order for 16 Wagon Rakes

Titagarh Rail Systems Limited (TRSL), a leading Indian rolling stock manufacturer, has been awarded a significant contract from Ambuja Cements Limited and ACC Limited, part of Adani Cement. The order, valued at approximately Rs 537.11 crore, includes the manufacture and supply of 16 BCFCM (Bogie Covered Fly Ash/Cement Wagon) rake wagons with BVCM (Bogie Brake Van Type) wagons, further reinforcing TRSL’s leadership in the freight rolling stock sector.The contract underscores TRSL’s expertise in designing and manufacturing specialised freight wagons for bulk transportation. The BCFCM and BVC..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?