Rising giants Dixon, Tatas set to wrestle for India EMS crown
Dixon Technologies and Tata Electronics.
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With its strong financial resources, Tata is positioned to secure more favourable supplier deals, potentially reducing manufacturing costs, which could lead to intensified competition between the two players. The competition to expand is also expected to lead to consolidation in the sector, as smaller EMS players seek strategic alliances to stay competitive.
While Dixon has been in the business for over three decades, it became the largest EMS provider for mobile phone production in India in Q3 2024. But Tata Electronics with their legacy and ambitious plans have expanded rapidly in just five years. With the company looking to service beyond Apple, the other large smartphone players it is in talks with are likely to use the Tata Electronics alternative as leverage to get the best price from their existing suppliers.
«Tata Electronics looking to add clients like Xiaomi and Oppo will intensify competition in the market and a price war will follow,» Ekta Mittal, senior analyst — connected devices at CCS Insight told ET. «Beyond price, other factors too will play a crucial role like the level of quality assurance, after-sales support and ability to incorporate the demand side support from the vendors. Companies will need to leverage their operations to offer
