Dixon Technologies Announces the Creation of Dixon Teletech, A Wholly-Owned Subsidiary

Dixon Technologies, a manufacturer of electronics hardware, announced on 5 November 2024 that Dixon Teletech, a wholly-owned subsidiary, would be incorporated to produce parts for IT hardware products. With orders from the top four laptop brands in the nation—HP, Lenovo, Acer, and Asus—the contract manufacturer is establishing facilities to increase laptop assembly under the production-linked incentive plan for IT hardware.

The company stated in an exchange filing that the wholly owned subsidiary was established with the purpose of manufacturing and dealing in a variety of information technology products, including IT hardware components, related products, equipment, and their components.

How Does the New Arm Work?

Dixon Teletech was formally established on September 28, 2024, and has already received a seed capital of INR 1 lakh from its parent firm for 10,000 shares at a price of Rs. 10 apiece. Dixon Teletech is prepared to manufacture a variety of IT hardware, components, and equipment, with an emphasis on increasing local laptop production.

Dixon is establishing revenue targets with these new alliances, hoping to generate a healthy INR 3,500 crore from its IT hardware division by FY26 and a significant INR 48,000 crore over the following six years.

Changing Regulations and the Need for Domestic Technology

With the existing authorisation framework expiring in December 2024, India's import regulations and policies for IT hardware are poised to become more stringent. After that, beginning in January 2025, importers will require new authorisations. Given that more international IT businesses are looking to India as a production base, Dixon's growth couldn't come at a better moment as global players explore Indian manufacturing centres.

Although Dixon Technologies' stock is down 1.35% as of now at INR 14,240.00, the company has demonstrated remarkable growth, rising 120.40% so far this year and 170.37% in the last 12 months. Dixon's decision is a symbol of India's growing potential in the global IT hardware industry as well as growth for the business. Given Dixon's track record of meeting goals and the PLI scheme's support for local production, Dixon Teletech has the potential to revolutionise the industry. This is a significant step in promoting local businesses and lowering dependency on imports.

About Dixon Technologies

In India, Dixon Technologies (India) Limited has been at the forefront of the electronic manufacturing services (EMS) market. Dixon was established in 1993 and began producing colour television in 1994. Since then, the company has grown to include a number of electronics sub-sectors.

The biggest domestic design-focused solutions company in India, Dixon Technologies (India) Limited, manufactures goods for the consumer durables, lighting, and mobile phone industries. Consumer electronics like LED TVs, home appliances like washing machines, lighting items like LED bulbs, tubelights, and downlighters, mobile phones, CCTV & DVRs, wearable technology, and refrigerators are just a few of their varied product offerings. Dixon also offers reverse logistics solutions, such as LED TV panel repair and refurbishment services.

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