Dixon Technologies – a Foxconn to be!

Dixon Technologies, a prominent Indian contract manufacturer, produces handsets for six of the top seven global brands. Analysts foresee Dixon’s revenues potentially doubling in FY25, driven by new partnerships and technological advancements. However, challenges such as declining demand for feature phones, which account for [specific percentage] of Dixon’s production, and maintaining profitability loom large in this low-margin industry. The Indian government’s Production-Linked Incentive (PLI) scheme has been a resounding success, leading to a surge in cellphone manufacturing.

This achievement is a testament to the effectiveness of the policy and the potential of the Indian mobile manufacturing industry. India now ranks smartphones as its fourth-largest export item, generating a substantial $15.6 billion in FY24. Key export markets include the US, the United Arab Emirates, the Netherlands, and the UK, with export values ranging from $1.1 billion to $5.6 billion. Moreover, India boasts a thriving domestic market, with the combined value of mobile devices in domestic and export markets reaching approximately ₹4.1 trillion ($49.16 billion) in FY24, marking a significant 17% increase year-on-year (YoY).

[Image Source: MoneyControl]