Big step in smartphone manufacturing

India’s leading electronics manufacturing company Dixon Technologies has announced the formation of a joint venture with Chinese smartphone manufacturer Vivo India. This joint venture will produce smartphones and other electronic devices. Dixon Technologies will hold 51% stake in this partnership, while Vivo India will hold 49%.

Dixon’s existing partnerships with Xiaomi and Samsung

Dixon Technologies is already a manufacturing partner with India’s two biggest smartphone brands Xiaomi and Samsung. This new partnership with Vivo will further strengthen Dixon’s business and help increase Vivo’s market share in India.

• Current market share: Vivo has 16-17% share of the Indian smartphone market.
• Market Potential: 15 crore smartphones are sold every year in India, of which there is an opportunity for outsourcing of 9-10 crore units.

Dixon’s manufacturing capacity

Smartphone manufacturing has a major contribution in the growth of Dixon Technologies:

• Smartphone production capacity: 5 crore units annually.
• Feature phone production capacity: 3 crore units annually.

Apart from this, Dixon is also exploring opportunities in the manufacturing segment of IT hardware and telecom products. Recently the company has acquired Ismartu India, giving it 11.6% stake in the mobile business. Dixon aims to achieve 35-40% annual growth in the next 3-4 years.

Strong hold of Chinese companies in the Indian market

The partnership between Dixon and Vivo India also raises the question whether a glimpse of improvement in relations between India and China is being seen in the electronics sector.

• Chinese companies already dominate the Indian mobile market, with a market share of 70-75%.
• In accordance with the manufacturing policy of the Indian government, Chinese companies are now focusing on production in India.

Great performance by Dixon Technologies

Shares of Dixon Technologies have given returns of more than 200% to investors in the last one year.

• 17 December 2024: The stock was trading at ₹19,032 with a gain of 1.07%.
• Despite the weak market, Dixon’s performance has been excellent.