Dixon Technologies (India) Share Price

Dixon Technologies India Ltd

Dixon Technologies (India) Limited, which was incorporated as a public limited company on May 2, 2017, is now India's biggest homegrown design-centric and solutions-driven company in the manufacturing space. Active in the business of manufacturing a wide range of consumer durables, lighting, and mobile phones, Dixon Technologies is a market leader in offering cutting-edge solutions across various verticals. With a diversified portfolio covering consumer electronics such as LED TVs, home appliances like washing machines, lighting products including LED bulbs, tube lights, and CFLs, mobile phones, and security systems like CCTV Digital Video Recorders (DVRs), the company has a wide range of industries and markets to cater to.

The company's expertise is not limited to manufacturing but includes reverse logistics operations like the repair and refurbishment of set-top boxes, mobile phones, and LED TV panels. Dixon Technologies is a completely integrated end-to-end product and solutions company, providing original equipment manufacturers (OEMs) with a full range of services that include global sourcing, manufacturing, quality testing, packaging, and logistics. Moreover, Dixon is a prominent Original Design Manufacturer (ODM) in India for products ranging from lighting to LED TVs to semi-automatic washing machines, which is a testament to its in-house research and development strengths.

Evolution and Milestones

Early Years: Establishing a Manufacturing Footprint

The company started its journey back in 1994 with the production of color televisions. By 1996, Dixon Technologies set up its first factory, Noida I, laying the foundation for its foray into other product categories. In 2007, Dixon started producing LCD TVs, entering the age of new television technology.

Diversification into New Verticals

Diversification by Dixon received a major boost in 2008 when it forayed into the lighting products category by producing CFL products. The company launched reverse logistics services in the same year, reflecting its emphasis on sustainability and operational efficiency. By 2010, Dixon had diversified its portfolio of television manufacturing to include LED TVs, reflecting its emphasis on innovation and market responsiveness.

Subsidiary Operations and Strategic Acquisitions

The years 2009 and 2010 saw the company's subsidiary, Dixon Bhurji Moulding Private Limited (DBMPL), initiating commercial operations in the metal sheet and moulding segments. In 2010, Dixon Appliances Private Limited (DAPL), another subsidiary, began manufacturing semi-automatic washing machines. These subsidiaries played a pivotal role in enhancing Dixon's operational capabilities.

In 2015, the company experienced a significant shift in its growth trajectory when it acquired the remaining shareholding in DAPL and DBMPL, transforming them into wholly-owned subsidiaries. The merger provided increased operational synergy for Dixon and simplified its operations.

Expansion into LED Products and Mobile Phones

Dixon further diversified its offerings by starting the production of LED products in 2016. That same year, its joint venture, Padget Electronics Private Limited (PEPL), began manufacturing mobile phones, marking the company's foray into the competitive mobile phone segment. Dixon also received approval from the Andhra Pradesh government to set up a manufacturing facility in Tirupati, reflecting its commitment to regional development and the "Make in India" initiative.

Amalgamations and Strategic Alliances

Dixon merged its wholly owned subsidiary, DAPL, with DBMPL in 2017 in order to consolidate its corporate structure. Dixon also entered into a joint venture with Aditya Infotech Limited to establish AIL Dixon Technologies Private Limited (ADTPL) for the manufacture of security devices like CCTVs and DVRs. All these actions demonstrated the excellent ability of Dixon in adapting to the requirements of the market and with advancing technology.

Key Partnerships and "Make in India" Initiatives

Collaboration with Flipkart and Xiaomi

Dixon Technologies' strategic alliances reflect its determination to capitalize on India's growing consumer electronics market. In October 2017, the company entered into a design, manufacture, and supply arrangement with Flipkart India Private Limited to manufacture televisions, washing machines, and other home appliances under Flipkart's MARQ brand. The tie-up was reflective of Dixon's position as a reliable manufacturing partner for online retailing giants.

In 2018, Dixon entered into a partnership with Xiaomi India to produce Mi LED TVs at its Tirupati plant. This was in line with the Indian government's flagship "Make in India" initiative and enabled Dixon to capitalize on its Liquid Crystal Module (LCM) manufacturing facility for affordable production. The two companies started with producing Mi LED Smart TVs in different sizes, bolstering Dixon's status as a leading player in the LED TV business.

Product Expansion and Innovation

The financial year 2019-20 marked significant product launches for Dixon Technologies, including LED and smart TVs and hybrid set-top boxes. The company also signed an MoU with its joint venture, AIL Dixon Technologies Private Limited, to manufacture RT-PCR devices. In 2019, Dixon acquired the remaining equity in Padget Electronics Pvt Ltd., converting it into a wholly owned subsidiary. Additionally, it established Dixon Electro Appliances Private Limited in 2020 to focus on consumer durables and electronic appliances.

Recent Developments and Technological Advancements

Focus on Air Conditioners and Networking Products

In 2022, Dixon formed a joint venture with Rexxam, Japan, to manufacture controller boards for air conditioners. The company also partnered with Beetel Teletech Limited to produce telecom and networking products, signaling its entry into high-growth technology sectors.

Expansion of PCB Manufacturing

Dixon Technologies set up its Printed Circuit Board (PCB) production facility for air conditioners in Noida in July 2022. This is actually quite a demonstration of Dixon's attempt to greatly strengthen its vertical integration and also its manufacturing capabilities.

Subsidiary Milestones

In February 2023, Dixon Communications Private Limited became a wholly owned subsidiary, further solidifying the company's diversified business model.

Financial Performance and Market Presence

Over the years, Dixon Technologies has demonstrated robust financial growth, achieving revenue from operations exceeding Rs 1,000 crore on a standalone basis in FY 2014. Its consistent expansion into high-demand sectors has been a crucial factor influencing the Dixon Technologies share price. The stock market's confidence in Dixon's growth strategy reflects its position as a trusted leader in the manufacturing space. Analysts frequently evaluate the Dixon Technologies share price as a barometer of its performance and market potential, considering its strong partnerships and innovative approach.

Quick Overview

Dixon Technologies' journey from manufacturing colour televisions to becoming a leading ODM for lighting products, LED TVs, and washing machines is a testament to its innovative approach and commitment to quality. Its extensive portfolio, strategic partnerships, and alignment with government initiatives like "Make in India" have positioned it as a key player in the electronics manufacturing industry. As the company continues to expand its capabilities and product offerings, the Dixon Technologies share price reflects its growing prominence and investor confidence in the Indian manufacturing sector.