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Dixon Technologies, a prominent electronics contract manufacturer, is experiencing a surge in demand for mobile phones and IT hardware. This robust demand is projected to drive significant revenue growth for the company in the near future. To accommodate this expanding market, Dixon has taken the strategic step of adding a 1.5 lakh square feet facility to its operations. This expansion is specifically designed to handle the increased demand of approximately 400,000 units from one of its key customers.
Atul B Lall, the managing director and vice chairman of Dixon Technologies, expressed confidence in the company's ability to sustain strong revenue growth. He attributed this optimistic outlook to the strengthening demand environment across all businesses and the acquisition of new customers. Dixon is currently executing a substantial order book that has been bolstered by the acquisition of Transsion's manufacturing arm, iSmartu. This acquisition has brought a significant influx of orders from Transsion Group brands such as Tecno, Infinix, iTel, and Nothing.
Lall further highlighted the healthy order book for Motorola, revealing that Dixon has consistently been producing 1 million units per month for the brand. The order book for Motorola appears promising for the coming months, with substantial export orders for North American markets. The company also experienced notable sequential growth in volumes for Xiaomi and Oppo in the second quarter. Furthermore, Dixon is poised to commence production for another major global brand by the end of November.
Dixon's strategic focus extends beyond simply meeting existing demand. The company is actively pursuing a strategy to deepen its manufacturing capabilities. A significant step in this direction is the production of display assembly. Dixon has partnered with Chinese firm HKC to undertake this endeavor, with plans to begin production of display modules by the end of the first quarter or the beginning of the second quarter of the next fiscal year.
Dixon's ambitions reach even further, with plans to delve into the production of precision components, mechanicals, and camera modules. The company is currently conducting thorough research and exploring potential partnerships to facilitate this expansion into higher-value manufacturing segments.
Source: Dixon Technologies expands to meet surging mobile & IT hardware demand