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Time of India
18 hours ago
- Business
- Time of India
Dixon sees margin boost in FY26, bets big on camera and display units
Dixon Technologies expects its operating margins to improve by 120-130 basis points in FY26 and go up even higher in FY27 after a full ramp-up of its new component business, with management expecting to more than compensate for the loss in PLI sops after the scheme ends next year. Revenues from its mobile business in Q1FY26 grew 125% on-year to Rs 11,663, while operating profit grew 131% on-year to Rs 395 crore. Dixon's mobile business contributed 91% to its topline of Rs 12,838 crore. Explore courses from Top Institutes in Please select course: Select a Course Category others healthcare PGDM Product Management Digital Marketing Design Thinking Data Science Management Project Management Cybersecurity Degree Finance CXO Operations Management Leadership MCA Public Policy Technology Artificial Intelligence Healthcare Data Science MBA Data Analytics Others Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details Dixon's EBITDA margins dropped by 10 basis points on-year to 3.8% in the quarter ended June 2025. Net profit for the quarter doubled on-year to Rs 280 crore. The contract manufacturer will start making camera modules , and display assemblies by the end of this fiscal, with precision mechanical components from the next fiscal, under the government's Rs 22,000 crore electronics component manufacturing scheme, Dixon MD Atul Lall said in an earnings call Tuesday. Dixon has projected Rs 750-800 crores in capital expenditure for its camera modules and display assembly business in FY26, with an additional Rs 300-400 crores in expanding capacities in its core EMS (electronics manufacturing services) business. The company is acquiring a majority stake in the India operations of Kunshan Q-Tech Microelectronics, among the five largest camera module manufacturers globally for Rs 400 crore. It has also formed a joint-venture with HKC for display assembly, with a facility getting ready in the next 45 days, Lall said. However, the joint venture deals and acquisitions are currently pending approval under the government's press note 3, which mandates ministerial approval for investments coming from neighbouring countries, especially China. Lall said the approval process is going well for these deals. Dixon expects a 15% sequential growth in orders ahead of the festive season, and a boost in export volumes for its anchor customer, Motorola to the United States. The company is also negotiating a large export opportunity for another global brand, Lall said. For the current year, exports are projected to reach Rs 7000 crore, from Rs 1600 crore last fiscal if the export deal works out, with Lall projecting Rs 11,000 crore in exports by FY27. The company has also started exporting to Africa, where it sees a large opportunity having been able to meet the cost targets. 'The ASP (average selling price) for export is almost similar to domestic ASP but exports have some ramp up requirements wherein we have to invest more in the organisation. So while the margin levels are finally going to be similar, initially the costs are going to be more,' Lall said. Dixon is also expanding its top management with more talent as it expands aggressively into newer categories. The company appointed a vice president of strategy and digital transformation, and another top executive to head the component business. 'We have hired an expert from Taiwan who heads our display manufacturing business, and a Korean expert who head our R&D for washing machines and appliances,' Lall said.
Business Standard
7 days ago
- Automotive
- Business Standard
Dixon Tech climbs on signing two strategic deals to boost electronics manufacturing
Dixon Technologies (India) rose 1.63% to Rs 16076.20 after the company announced two major strategic agreements aimed at strengthening its presence in India's electronics component ecosystem. In the first deal, Dixon signed a binding term sheet to acquire a 51% stake in Q Tech India. The collaboration will focus on manufacturing, sale and distribution of camera and fingerprint modules for mobile handsets, internet of things (IoT) systems and automotive applications. The acquisition will be completed through a mix of primary and secondary investments and is subject to regulatory approvals and definitive agreements. Atul B. Lall, vice chairman and managing director of Dixon Technologies (India), added that "Acquiring majority stake in Qtech India is a major step forward in Dixons journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications thereby strengthening backward integration plans of the company. The proposed acquisition of a majority stake in Q Tech India aligns with our long-term vision to be a leading enabler in Indias electronics manufacturing ecosystem by combining Q Techs technological expertise with Dixons manufacturing scale and operational excellence." In a separate development, Dixon also entered into a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. to form a joint venture in India. Under the proposed structure, Dixon will hold a 74% stake, while Chongqing will own 26%. The JV will engage in the manufacturing and supply of precision components for laptop, mobile phones, IoT, automotive and any other products in India. Commenting on this alliance, Lall added, "We are delighted to announce our strategic collaboration with Chongqing Yuhai Precision Manufacturing Co., a global leader in mechanical enclosures through a prospective joint venture. This joint venture with Chongqing will focus on manufacturing precision mechanical & metal parts & components for a wide range of applications including laptops, mobiles, IoT, automotive which is a significant step in our effort towards localisation of key components, deepening backward integration in Dixon value chain & supporting the Make in India initiative of the government. We look forward to combining Chongqing's deep technical expertise with Dixons robust manufacturing infrastructure & customer access. This will mark a significant step forward in our continued journey to strengthen Indias electronics manufacturing ecosystem through high-precision components and advanced technologies. We look forward to mutually enrich this relationship that creates long-term value for our customers and stakeholders." Dixon Technologies is a design-led solutions provider engaged in manufacturing products across consumer durables, lighting, and mobile phone segments in India. The company is scheduled to announce its Q1 results on 22 July 2025. On a consolidated basis, net profit of Dixon Technologies (India) surged 321.16% to Rs 400.82 crore while net sales soared 120.97% to Rs 10292.54 crore in Q4 March 2025 over Q4 March 2024.
Time of India
16-07-2025
- Automotive
- Time of India
Dixon's Rs 1,000 crore bet: Ties up with two Chinese firm for key electronics components; gears up for post-PLI era
Dixon Technologies is set to invest Rs 1,000 crore to strengthen its expertise in producing key components such as camera and fingerprint modules, as well as precision mechanical enclosures used in mobile phones, IoT devices, laptops and automobiles. The move is aimed at deepening backward integration and reducing reliance on external suppliers across its manufacturing operations. The company on Tuesday revealed a joint venture with China's Chongqing Yuhai Precision Manufacturing for the production of precision mechanical parts used in mobiles, laptops, Internet of Things (IoT) devices and automobiles. Under the deal, Dixon will hold a 74% stake, keeping the Chinese partner's share within the government's informal 26% cap under the component manufacturing programme. Additionally, Dixon has signed a term sheet to acquire a 51% stake in the India arm of China-based Kunshan Q Tech Microelectronics, which manufactures camera and fingerprint modules. The acquisition, worth Rs 500 crore, will be followed by another Rs 250 crore investment to scale up production capacity, under the Centre's Rs 22,919 crore Electronics Component Manufacturing Scheme. 'Acquiring majority stake in Qtech India is a major step forward in Dixon's journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications thereby strengthening backward integration plans of the Company' Atul Lall, managing director of Dixon Technologies told ET. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esta nueva alarma con cámara es casi regalada en Rivadavia (ver precio) Verisure Más información Undo 'This JV with Chongqing will focus on manufacturing precision mechanical & metal parts & components for a wide range of applications including laptops, mobiles, IoT, automotive which is a significant step in our effort towards localisation of key components, deepening backward integration in Dixon value chain' Lall was quoted as saying. Dixon's broader ambition is to reduce its dependence on low-margin assembly work and secure long-term margins through tech-led manufacturing. The investment also reflects a growing trend among Indian players to form strategic tie-ups with global tech suppliers as the PLI scheme nears its end. Currently, Kunshan Q Tech's Indian operations produce about 4 million modules monthly, largely catering to Android handset makers. The facility will now be ramped up to support Dixon's own assembly lines. This is Dixon's third such partnership to boost its component portfolio. The company earlier teamed up with China's HKC to produce display modules, and with Taiwan's Inventec to manufacture PCs and laptops. It also partners with smartphone majors like Vivo, Motorola and Transsion for long-term production contracts. Dixon remains one of the few Indian firms to qualify for incentives under the PLI scheme for smartphone manufacturing, which is scheduled to run till 2026. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Print
15-07-2025
- Automotive
- The Print
Dixon partners Chinese firm Chongqing to set up electronics component joint venture
Dixon Technologies (India) Ltd and Chongqing Yuhai Precision Manufacturing Co Ltd have entered into a binding term sheet to form a prospective joint venture in India, the company said in a filing. New Delhi, Jul 15 (PTI) Domestic electronic contract manufacturing firm Dixon on Tuesday said it has collaborated with Chinese company Chongqing Yuhai Precision Manufacturing Co Ltd for manufacturing and supply of precision components used in electronic products like laptop, mobile phones etc. Dixon is proposed to hold 74 per cent stake in the JV and the rest will be held by Chongqing. The JV will carry on the business of manufacturing and supply of precision components for laptop, mobile phones, IoT, automotive and any other products which both parties agree in India. 'We are delighted to announce our strategic collaboration with Chongqing Yuhai Precision Manufacturing Co Ltd, a global leader in mechanical enclosures through a prospective Joint Venture,' Dixon Technologies (India), Vice Chairman & Managing Director, Atul B Lall said in the filing. The joint venture is subject to receipt of necessary statutory approvals and signing of definitive agreements, the filing said. 'This Joint venture with Chongqing will focus on manufacturing precision mechanical & metal parts and components for a wide range of applications including laptops, mobiles, IOT, automotive which is a significant step in our effort towards localisation of key components, deepening backward integration in Dixon value chain and supporting the Make in India initiative of the government,' Lall said. PTI PRS DRR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
15-07-2025
- Automotive
- Business Standard
Dixon Technologies inks deal to acquire 51% stake in Q Tech India
Dixon Technologies (India) on Tuesday inked a deal to acquire a 51 per cent stake in Q Tech India from its parent company Q Technology (Group) Company Limited. The partnership aims at boosting manufacturing, sale and distribution of camera and fingerprint modules for mobile handsets, internet of things (IoT) systems, and automotive applications, Dixon said in a BSE filing. The acquisition, which is subject to regulatory approvals, will be consummated through a combination of primary and secondary investments by Dixon. The acquisition will help Dixon enhance its capabilities in critical components by gaining access to technology, high precision manufacturing, and a strong talent pool, which will help the company expand into new geographies and contribute to India's component ecosystem. Comments from Dixon's Lall "The acquisition aligns with our long-term vision to be a leading enabler in India's electronics manufacturing ecosystem by combining Q Tech's technological expertise with Dixon's manufacturing scale and operational excellence," Lall added. Lall said he is confident that this deal will accelerate technology transfer and enable faster go-to-market solutions. Dixon shares Q Tech's vision for innovation 'We are delighted to partner with Dixon Technologies, a company that shares our vision for innovation and excellence in the optical components for electronics manufacturing space," said Roy Ho, chairman, Q Tech Group. "Our combined expertise will help us meet the growing demand for high-precision camera and fingerprint modules. Together, we aim to deliver cutting edge solutions and create long-lasting value for all stakeholders," said Ho. Earlier this month, Dixon formed a joint venture (JV) 'Lightanium Technologies', with Signify Innovations, the manufacturer of lighting products. The JV is aimed at expanding Dixon's foothold in the lighting segment. The company has a 50 per cent shareholding in the JV with a total investment of ₹2.5 crore.
