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Dixon Technologies Ltd. is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India?

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1)It is also a leading Original Design Manufacturer (ODM) of lighting products, LED TVs and semi-automatic washing machines in India.
As an ODM, it develops and designs products in-house at its R&D center.

2)It manufactures and supplies these products to well-known companies in India who in turn distribute these products under their own brands.

3)Consumer Electronics: From Q1FY22, this segment consisted of reverse logistics business, in addition to the AC PCB (Printed Circuit Board). Q1FY22 Revenue from reverse logistics business: Rs.39.14 cr., from AC PCB: Rs.1.7 cr.

4)The company has also started production of large screen sized TVs (70,75,85 inch) for its anchor customers. The capacity expansion to 5.5 million TV sets was expected to achieve by the months of Aug-Sept 2021.

5)The PCB capacity with a new line of SMT (surface mount technology) was expanded to 2.8 million (from 1.8 million in Q4 FY21). The production of monitors is expected to commence from Q3 FY22.

6)The expected volume in the first year is ~0.5 mn and has the potential to increase to 1 mn from the second year onwards.

7)Lighting: The company has a strong order book from this segment as of Q1FY22. Almost 80 brands in the lighting business are associated to this company. The company expanded the capacity of batens to 5 mn per month and in downlighters from 6 lakhs per month to 1.5 mn per month.

8)Home Appliances: The company has planned to expand its capacity from 1.2 mn to 1.5 mn. The facility for loading semi-automatic washing machine in Tirupati, and mass production was also planned to be implemented by Sept 2021.

9)Mobile & EMS Division: The management has a target to expand the capcity to 15 mn in the next couple of years (current capacity is at 3.5 mn). The production has commenced for Samsung 4G phones and currently, it has a strong order book of ~1 mn 4G phones per month.

10)Revenue from the set-top box segment is expected to be in the range of Rs.400-Rs.500 cr.
Security Services: The order book is currently healthy and management is planning capacity expansion.

11)Dixon has entered into a MoU with Bharti enterprises to form JV, which will cater to routers, modems and various other telecom products. The manufacturing is expected to kick-off by Q3FY22. The management expects Rs.~2,000 cr. from the telecom segment.

12)The company has started manufacturing of the truly wireless (TWS) earphones for Boat. It is also eagerly waiting for PLI scheme in the category. Currently, revenue from this category ranges between Rs.1,500-Rs.2,000 crore.

13)The intensity of capital expenditure is expected to rise in future due to various new PLI based manufacturing activity.

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