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Dixon Eyes M&A to Boost Mobile Business
Last Updated: 6th June 2024 - 04:14 pm
Dixon Technologies, a leading electronics manufacturing services (EMS) company, is actively pursuing merger and acquisition (M&A) opportunities to accelerate its growth in the electronics manufacturing segment. The company's Managing Director, Atul Lall, expressed confidence in Dixon's strong balance sheet and technical competence to support such strategic moves.
Mobile Manufacturing Capacity Expansion
Mobile manufacturing is Dixon's largest business segment, and the company is creating an annual capacity of 40-45 million mobile units by this fiscal year. With top Android brands like Samsung, Xiaomi, Realme, Motorola, and Transsion-Ismartu (Techno, iTel, and Infinix), Dixon is targeting to capture 40-45% of the total EMS outsourcing opportunity in India.
Display Module Manufacturing Joint Venture
Dixon has finalized a technology partner to form a joint venture for display module manufacturing, with a planned investment of $30 million. These display modules will be used in smartphones, laptops, and tablets, marking the company's foray into the component ecosystem.
Component Ecosystem Strategy
Recognizing the need for a robust component ecosystem beyond semiconductors, Dixon is actively pursuing opportunities in precision components and mechanicals. The top executive emphasized the importance of deepening the ecosystem for a long-term growth story, leveraging partnerships to access advanced technologies.
Expansion Plans and New Contracts
Dixon is also planning to build a campus in Tamil Nadu to house a new business from a global player, further diversifying its offerings. Additionally, the company expects its joint venture with Airtel for customer premises equipment (CPE) and routers to yield results as demand for 5G fixed wireless access (FWA) broadband service picks up in the country.
IT Hardware Segment Opportunities
The IT hardware segment presents a $1 billion opportunity for Dixon over the next two to three years. The company has secured contracts in this segment and plans to start commercial production by September, positioning it as a new revenue generator.
With a strategic focus on M&A, component manufacturing, and diversification into new segments, Dixon Technologies is poised to capitalize on India's growing EMS and electronics manufacturing opportunities.
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