Leading Electronic Manufacturing Services (EMS) player Dixon Technologies will foray into camera module manufacturing through an inorganic route, while gearing up to commence display module production by the third quarter of next fiscal, the company has told Moneycontrol.
The company also aims to leverage the Electronics Component Manufacturing Scheme, which has a funding outlay of Rs 22,919 crore, and will apply for benefits in the coming days.
“We are quite positive about this scheme. We need to create a strong component ecosystem because now the finished product manufacturing has already achieved a certain scale, and to make India the next hub for exports, we need a component ecosystem and enhanced value addition to achieve this success. This scheme will go a long way in creating the component ecosystem,” said Sunil Vachani, chairman of Dixon Technologies, in an interview with Moneycontrol.
“Now we can go full steam and make sure that we roll out the factories of these two products. We want to assure the government and the investors that we will be coming out with this production very fast,” Vachani said.
Managing Director Atul Lall said the scheme is key to Dixon’s growth trajectory, particularly in non-semiconductor component manufacturing. “This is the next trajectory for the industry, and so is the case for Dixon to deepen its manufacturing,” he told Moneycontrol.
Dixon’s display module plant, through its joint venture with China's HKC, is slated to be operational by third quarter of the fiscal, initially producing 2 million mobile device displays per month, with plans to expand to 4 million. “...then we're going to expand into notebook display and finally, into TV display,” Lall added.
Dixon Technologies is aiming for Rs 3,000 crore in revenue by 2026-27 (FY27). While first-year revenues may be around Rs 500-600 crore, the business is expected to grow rapidly in the coming years.
The company is also exploring diversification into camera module manufacturing through an inorganic approach, and is in discussions with global partners.
“...these items are covered on the components PLI and are two categories we're looking at. The resources are in place, and the team has been built. We also want to look at it beyond this,” Lall said.
Additionally, Dixon plans to expand into mechanical parts for electronics, another segment covered under the new scheme.
Investment in the display module plant will total Rs 400 crore over two phases, while plans for the camera module investment are still being finalized. “Dixon has more than adequate cash accruals,” Lall assured.
These moves are part of a broader strategy to increase the value addition in mobile manufacturing, which currently stands at 17-18%. The inclusion of display and camera modules could push this figure to around 30%, enhancing India’s competitiveness in electronics manufacturing.
Chairman Vachani said the government's turnover-based incentives for camera and display modules are a crucial industry demand that has been met.
“We are glad that the government has taken on board the suggestions given by industry associations like ELCINA and ICEA. There were extensive consultations with the industry on this,” he said.
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