“We must continue to build India's component ecosystem”

In a country striving to become a global manufacturing hub, Voice&Data Telecom Person of the Year 2024 and the Founder and Chairman of Dixon Technologies Sunil Vachani, has emerged as a pivotal force. His company, once reliant on LED TVs, is now one of India's leading homegrown EMS firms, expanding across mobile phones, routers, set-top boxes, and telecom hardware.

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Through strategic diversification, partnerships with global majors, and a strong push for localisation, Vachani has helped transform India into a serious player in electronics manufacturing. In this conversation with Shubhendu Parth, he reflects on Dixon's journey, telecom manufacturing, and the road ahead.

Back in 2021, you had called that year the 'Golden Moment' for electronics manufacturing in India. How would you describe 2024 from the perspective of telecom equipment manufacturing?

I recall our last interaction, during which we discussed how both of us were quite optimistic about the times ahead and the potential for India to emerge as a global manufacturing hub. Much of that is now becoming a reality.

We have seen some remarkable numbers. From importing nearly everything to now having ICT and electronics as our third-largest export category, this transformation is remarkable. Around USD 110 billion worth of ICT demand is being met through domestic manufacturing, out of a USD 150 billion market. It is a significant milestone, but we cannot stop here. We must continue to build the component ecosystem, enhance design capabilities, and scale further to remain globally competitive.

So, in terms of defining 2024, should we call it the 'Yahoo Moment' of telecom manufacturing or a 'Y2K moment'—a tipping point like what software saw in the late 90s?

If you recall, in the early days of the software sector, there was a sense that it would become significant for India. However, it had not yet scaled to that level until the Y2K phenomenon occurred. That was when we witnessed a sudden surge in demand and large-scale growth.

Indian champions emerged, and major companies such as Infosys, Wipro and several others went on to become globally recognised names. I believe a similar opportunity and potential exist in our industry right now. We are at a point where we may soon witness that kind of hockey-stick growth.