Dixon is becoming India’s Foxconn
₹4.1 trillion ($49.16 billion) in FY24, marking a 17% increase year-on-year (YoY). Amid this surge, Dixon Technologies Ltd, an Indian contract manufacture, stands as the biggest success story, producing handsets for six of the top seven global brands. In this business since 2015-16, Dixon has scaled its production to 45 million smartphones and 40 million feature phones annually.
The company has broadened its portfolio to include large displays for digital signage and flat TVs, as well as handset displays. Additionally, it has entered the fixed wireless access market for 5G devices, manufacturing products for companies such as Nokia and Bharti Airtel. Dixon makes other electronic items and components, and household lighting as well, including being the anchor supplier for lighting brands.
But telecom remains its key market segment, contributing about two-thirds of its total income. The company is progressively moving up the value chain, with Original Design Manufacturing (ODM) growing as a percentage of total revenues. The company is investing heavily, as is normal in the industry.
Capital expenditure (capex) was around ₹569 crore in FY24, while revenues at ₹17,691 crore. For FY25, it plans to spend ₹240 crore to develop the capacity to produce nearly 25 million display modules and has forged technology partnerships for these, and interactive flat displays. In total, Dixon anticipates a total capex of ₹550 crore in FY25.
The market seems fairly happy, as revenues were up 45% YoY in FY24 and Ebitda (earnings before interest, taxes, depreciation, and amortization) at ₹698 crore, rose 36%. Net profit increased 47% to ₹373 crore. Many analysts, however, were expecting even faster growth.
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