Industry Odisha Bureau, Sep 23: Dixon Technologies wants its future built on more than smartphone assembly. Camera modules, displays and IT hardware now anchor its expansion plans. Margins, however, remain under pressure.
Smartphones generate more than 90% of Dixon’s revenue. That concentration explains why the Noida-based electronics maker is widening its reach. Chairman and founder Sunil Vachani is steering Dixon towards components, IT hardware and data centres. He outlined the plan to Bloomberg Television. The shift aims to lift margins beyond the core phone business.
Camera Modules Lead Dixon’s Component Push
Components form the next layer of Dixon’s electronics manufacturing strategy. Camera modules, described as higher-margin products, sit at the front. Subsidiary Q Tech currently has annual capacity of 70 million camera modules. Management plans to lift that to 180–190 million units. The expansion is expected over the next 15 to 18 months.
Trials at Dixon’s display facility are slated for the third quarter of FY27. Mass production is expected in the fourth quarter.
Servers and Data Centres Open New Front
IT hardware offers Dixon a second route beyond phones. The company is expanding laptop production and moving into servers. It has partnered with a Taiwanese firm on optical equipment for data centres. A second IT hardware plant is due to open in late November. Defence manufacturing is another area on the list.
Vachani said India imports almost $15 billion of IT hardware.
Vivo Venture Adds Phone Scale
Diversification does not mean retreating from phones. Dixon has won government approval for a venture with Vivo’s Indian unit. Dixon will hold 51%, while Vivo will own 49%.
Clearance followed a review under Press Note 3. Those rules govern investment from countries sharing a land border with India. Operations are scheduled to begin in FY27’s third quarter.
Excluding Vivo, management expects FY27 mobile volumes of 32–33 million units. That guidance holds despite a double-digit contraction in the domestic smartphone market.
One-Off Gain Masks Margin Pressure
For the June quarter, revenue from operations rose 21% to ₹15,547.66 crore. Net profit attributable to owners reached ₹663.42 crore, up from ₹225 crore. That jump was largely one-off. It included a ₹519 crore fair-value gain on a 2.38% Aditya Infotech stake.
Excluding the gain, EBITDA fell 2% to ₹472 crore. The margin narrowed 80 basis points to 3%. Dixon partly blamed mobile margin pressure on expired benefits under the first mobile PLI scheme. Its shares have fallen 28% over the past year.
Dixon’s Global EMS Ambitions
Dixon currently ranks outside the world’s top 10 electronics makers. Taiwan’s Foxconn leads the industry. Vachani wants Dixon in the top 10 within five years. He targets the world’s top 5 within a decade. “The vision is very clear,” he said.
The company began three decades ago with borrowed money in a rented shed. It now builds smartphones, televisions and washing machines for Motorola, Xiaomi, HP and Samsung.
India’s Manufacturing Backdrop
Dixon’s plans mirror India’s drive to attract manufacturing through production-linked subsidies. The country has drawn brands such as Apple and Samsung. It still trails China and Taiwan in electronics manufacturing. For Dixon, the test is whether components can reshape a phone-heavy business.
