The total market size in terms of volume for IT hardware products in India is estimated at $20 billion, said Saurabh Gupta, Chief Financial Officer at Dixon Technologies. The company on December 11 announced that its wholly-owned subsidiary Padget Electronics has been awarded a contract by Lenovo to manufacture laptops and notebooks, under the Production-Linked Incentive (PLI) 2.0 Scheme.
In an interview with CNBC-TV18 on December 12, Gupta also said that for the next financial year, Dixon Technologies aims to capture at least 10-15 percent of Lenovo's volume requirements for the Indian market.
"Lenovo is the second largest player in the India market, they have a 19 percent market share," Gupta added.
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Business Outlook
In terms of manufacturing laptops and tablets, Dixon Tech would be making 5-6 lakh units in the next financial year, the CFO said. He added the company will see a total of Rs 4,500 crore IT hardware opportunity in FY26 led by Lenovo.
"Margin would be around 2.8-3 percent for the next couple of years," Gupta said, adding that the company has invested Rs 250 crore.
Shares of Dixon Technologies zoomed 5 percent to hit a 52-week high of Rs 6,710.40 in the early trade on December 12.
Dixon Technologies Ltd reported a consolidated net profit of Rs 113.36 crore for the second quarter of the financial year 2023-24, up 46.99 percent from Rs 77.12 crore in the year-ago period.
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