India's Own Foxconn?

PLI-powered and export-hungry, Dixon's new road map could reshape India's electronics play

- SURAJEET DAS GUPTA

Dixon Technologies has earned a rare distinction: it is the only Indian company ranked among the top 20 global electronic manufacturing services (EMS) players by revenue in 2024, according to research agency Manufacturing Market Insider. In a league dominated by heavyweights like Foxconn, Pegatron, and Luxshare, Dixon's presence is a significant achievement for a homegrown brand.

Still, the scale difference is stark. Dixon's 2024-25 (FY25) revenues, at ₹38,860 crore, are just a quarter of Foxconn's revenues from India alone (₹1.72 trillion), thanks largely to Apple Inc, which remains the dominant force in the Indian EMS landscape.

Yet, Dixon has set its sights high. The company aims to break into the top 10 of the global EMS rankings within the next three years. That will require it to more than double its revenues—an ambitious but not impossible leap.

Assembler to value chain anchor To fuel this growth, Dixon is transitioning from being a predominantly domestic assembler—smartphone assembly accounted for 89 per cent of its revenue as of Q3 FY25—to becoming a deeper player in the electronics value chain. The strategy: aggressive backward integration into sub-assemblies and components.

To kickstart the strategy, Dixon, last week, announced two key partnerships with Chinese firms. First, it will acquire a 51 per cent stake in Qtech India, which is part of China's Qtech Group that makes mobile camera and fingerprint modules in India for original equipment manufacturers (OEMs) such as Vivo and Oppo. Second, it plans a joint venture with Chongqing Yuhai Precision, with a 74 per cent stake to manufacture precision mechanical and metal parts and components for mobile phones and laptops.

These developments come on the heels of an earlier JV announcement with China's HKC to make display modules for smartphones, laptops, and tablets—a deal that will need government approval, as will the others.