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Electronics manufacturing industry in India will touch $300 billion by 2026-27

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NOIDA : Atul Lall, MD of Dixon Technologies, believes the electronics manufacturing service (EMS) industry in India is expected to touch almost $300 billion by 2026-2027. Within the sector, the biggest opportunity is smartphones, making it the largest trigger of growth for the company.

“We are sitting at almost 50% of the outsourcing opportunity. All the major brands in the Android ecosystem are our clients. So we feel fairly confident that the growth is going to be aggressive,” Lall said.

He sees 200–250% growth in the telecom space as the company has added new products in its joint venture (JV) with Airtel.

“Orderbook is good. I would like to assure all the stakeholders that we are on a good path,” he said.

According to him, the company should be touching 20–30 million units of mobile in the current fiscal year, and the execution is going as per plan.

In FY26, the company guided for 20% growth on these 30 million units. So it should be 35–40 million units in FY26, he mentioned. Dixon Tech is sitting on 50% of India’s Android capacity.

The company has also launched its refrigerators, the commercial production has started and the order book is very good, he said.

On June 7, 2024, shares of Dixon Technologies reached a record high, surpassing ₹10,000 for the first time. The company has entered into a term sheet with HKC Corp Ltd. to establish a joint venture for manufacturing and selling products. This joint venture will produce LCM and TFT-LCD modules and assemble end products such as smartphones, TVs, monitors, and automotive displays.

“So this JV with HKC – which is one of the largest global players in glass and display manufacturing – is going to fructify in the next 8-10 months. In phase I, we are going to set up a manufacturing facility in Noida, Greater Noida for manufacturing 20 million mobile displays to start with, which would be largely for captive consumption,” he said.

In year two, it is going to double to 40 million, he added. “With 20 million units, the revenues to be generated are going to be ₹2,500 crore.”The current market capitalisation of the company is ₹74,743 crore.

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