Dixon Floats New Arm To Manufacture IT Hardware Components

Dixon Technologies just made a move for India’s electronics manufacturing, launching a new venture called Dixon Teletech. This fresh subsidiary is set to focus solely on making IT hardware components right here in India, targeting everything from laptops to essential tech parts. Dixon has perfectly timed this, lining up with the government’s Production-Linked Incentive (PLI) 2.0 scheme for IT hardware, which will make India a bigger player in the global tech space.

What’s the New Arm All About?

Dixon Teletech, officially set up on September 28, 2024, already got its starting boost, Rs.1 lakh in seed capital from its parent company for 10,000 shares at Rs.10 each. According to a BSE filing, Dixon Teletech is ready to produce a range of IT hardware, parts, and equipment, with a particular focus on boosting local laptop production.

Partnering with the Big Names in Tech

To really hit the ground running, Dixon has secured contracts with four of the biggest laptop brands in India: HP, Lenovo, Acer, and Asus. With these partnerships, Dixon is setting revenue goals, aiming for a solid Rs.3,500 crore from its IT hardware business by FY26, and a major Rs.48,000 crore over the next six years.

Shifting Policies & Demand for Homegrown Tech

India’s import rules and policies for IT hardware are about to tighten, with the current authorization regime set to end by December 2024. After that, importers will need new authorizations starting January 2025. With global players eyeing Indian manufacturing hubs, Dixon’s expansion couldn’t be more timely, especially as more global tech companies look to India as a base for production.

Dixon Technologies shares are trading 1.35% lower today at Rs.14,240.00, but they’ve shown impressive growth, up 120.40% year-to-date and 170.37% over the past year.

Conclusion: Dixon’s move doesn’t just represent growth for the company, it’s a signal of India’s rising potential in the global IT hardware market. With the PLI scheme backing domestic production and Dixon’s record of hitting targets, Dixon Teletech could be a game-changer. This is a big leap toward reducing reliance on imports and supporting local.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.