Dixon Technologies, a prominent homegrown electronics manufacturer, has announced the incorporation of a wholly-owned subsidiary, Dixon Teletech, aimed at manufacturing IT hardware components.
The incorporation of Dixon Teletech was officially completed on September 28, with the parent company paying the subscription on November 4.
According to a filing with the Bombay Stock Exchange (BSE), Dixon Teletech will manufacture and distribute various IT hardware products, components, and equipment.
Dixon Technologies announced it acquired 10,000 equity shares of its new subsidiary at a face value of INR 10 each, with a cash consideration of INR 1 Lakh.
The new subsidiary’s establishment aligns with Dixon’s strategic aim to strengthen its IT hardware manufacturing capabilities, positioning itself as a critical player in the rapidly growing Indian electronics sector.
This expansion comes as the company gears up to take advantage of India’s Production-Linked Incentive (PLI) 2.0 scheme for IT hardware, a government initiative designed to encourage local manufacturing.
Dixon has already signed agreements with leading global laptop brands—HP, Lenovo, Acer, and Asus—to manufacture IT hardware domestically.
With an ambitious revenue goal of INR 3,500 Cr from its IT hardware segment by FY26, Dixon projects a revenue potential of INR 48,000 Cr over the next six years.
Dixon’s expansion arrives amid growing regulatory changes.
India’s import authorization rules for personal computers, laptops, tablets, and servers are set to expire in December 2024, creating an opportunity for domestic manufacturers.
Importers will need to apply for fresh authorizations starting January 1, 2025, as the government promotes “Make in India” by incentivizing local manufacturing.
Dixon Technologies has been a prominent player in the domestic electronics manufacturing space, particularly within the smartphone industry, where it has partnered with global brands like Samsung, Motorola, Xiaomi, and Jio.
The company’s robust performance under previous PLI schemes has positioned it favorably to capture a substantial share of the IT hardware market.
This strategic pivot toward IT hardware manufacturing not only underscores Dixon’s commitment to expanding its product portfolio but also signals the shifting landscape in India’s tech manufacturing sector, as global companies increasingly seek local production bases in response to government incentives and policy changes.
