Dixon’s cautionary tale: The faster they grow, the harder they fall

livemint.com:

Subscribe to enjoy similar stories. As the world order shifts from globalization towards protectionism, the Indian government too has shown persistent focus on Atmanirbhar Bharat, or self-reliant India, with initiatives like production-linked incentives (PLI) schemes to encourage local manufacturing. Electronics manufacturer Dixon Technologies Ltd was among the earliest to answer the government’s call to manufacturers to ‘make in India’.

It was the first to tap subsidies under the PLI for smartphone manufacturing when the scheme was launched in 2020-21. Dixon Technologies has made the most of the capital expenditure subsidies, by establishing manufacturing units in 21 cities and partnered with major global smartphone brands, which have reflected in its robust financials. Also read | Dr.

Agarwal's Health Care IPO: High valuation calls for caution When Dixon Technologies was incepted in 1994 it used to manufacture colour television sets for various brands. It started manufacturing LCD TVs in 2007, lighting products the next year, and LED TVs and washing machines in 2010. The inflection-point in its journey came in 2016, when it ventured into manufacturing mobile phones.

Thanks to its government-subsidised capital expansion starting in FY21, Dixon set up more than 20 manufacturing facilities covering about 5 million sq.ft. in multiple cities, including Noida, Dehradun, Ludhiana, and Tirupati. It also quickly became a trusted manufacturing partner for major global smartphone brands.