Dixon Lines Up India Investment Of Up To INR 1,800 Cr For Big-Ticket Buys, Venture Into EV Space

Homegrown electronics manufacturer Dixon Technologies has reportedly lined up INR 1,500-1,800 Cr as part of its India investment plan over the next three years.

The investment is aimed at expansion of production capacity and component manufacturing, Dixon’s vice chairman and managing director Atul Lall told ET.

The company plans to fund this substantial investment through internal accruals, while tapping its cash flow.

Lall further said that Dixon Technologies will be looking to invest over INR 500 Cr this year itself and remain open to raising funds for big-ticket acquisitions. 

“Around one-third of the capex will be invested in backward integration of components. This fiscal itself, we will invest around INR 570 Cr. We will not be shy of making investments since our balance sheet is very strong with no debt.” said Lall.

Inc42 has reached out to Lall for a comment on the development. The story will be updated based on the response.

Founded in 1993 by Sunil Vachani, Dixon Technologies is leading the race of the electronic manufacturing services space in India. As profits grew, the company has now expanded its operations to various sub-segments such as consumer electronics, home appliances, mobile phones, medical electronics, security surveillance systems and more.

The NSE-listed company also claims its clientele comprises leading global and domestic brands to which it serves as original equipment manufacturer (OEM) as well as original design manufacturer (ODM).

The Noida-based manufacturer is currently eyeing to venture into the electric vehicle space with the manufacturing of components like electronic modules, the ET report said.

Meanwhile, companies across the globe are eyeing to invest in the Indian market, betting on the economy’s boom to become the third largest in the world.

Sovereign wealth fund Abu Dhabi Investment Authority (ADIA) was reportedly planning to establish a $4.5 Bn (INR 37,595 Cr) fund to invest in India via the GIFT City in February, which will allow the investment giant to fund Indian startups, debt securities, and both Indian and foreign equities.

Less than a month ago, Alphabet-owned Google was reported to have partnered with Dixon to manufacture the big tech major’s flagship Pixel 8 smartphones in India.

Based on earlier news reports, the trial production of the devices has already begun, and the first batch of these made-in-India Google Pixel 8 phones will hit the shelves by September this year.

The company reported its revenue rose about 53% to INR 4,675 Cr in the fourth quarter ended March 31, 2024 against INR 3,065 Cr from a year ago.