Dixon Technologies, the electronic manufacturer, has secured a large order from Reliance Jio to manufacture 15 million Jio Bharat Phones. Of this order, Dixon has already delivered 1 million phones. The commercial production has commenced, and the company is optimistic about the growth potential in the mobile segment, attributing it to the increase in the feature phone segment. The partnership with Jio and other handset makers positions Dixon Technologies for significant growth in the mobile segment. The manufacturing of Jio Bharat phones and other smartphone production endeavours align with the company’s expansion plans and underscore its commitment to contributing to India’s growing mobile market.
Jio’s 4G Feature Phone:
Earlier this month, Jio launched its 4G feature phone at an affordable price of Rs 999. To enable local handset manufacturers like Dixon to develop feature phones as contract manufacturers of Jio Bharat phones, the company has opened the scope for hardware and design.
Growth Prospects:
The manufacturing of Jio Bharat phones will also qualify Dixon for benefits under the smartphone production-linked incentive scheme. For the current fiscal year, the feature and smartphone manufacturing segments is estimated to contribute around Rs 1,500 crore to Dixon’s business.
Other Partnerships:
Apart from Jio, Dixon has also on boarded Chinese handset maker itel. Production of itel feature phones has already commenced at a rate of 1 million units per month, and smartphone production is set to begin from September. Additionally, Dixon is looking to start production of about 0.5 million smartphones per month for Xiaomi from September or early October, with plans to ramp up production to 1 million units per month gradually.
Positive Outlook:
With an optimistic outlook for its mobile business, Dixon is witnessing growth, with Samsung being one of the largest contributors. The company produced 2 million units of Samsung smartphones in the April-June quarter, while the overall volumes outside of Samsung accounted for 3.4 million units during the same period.
Revamped IT Hardware PLI Scheme:
Looking ahead, Dixon is also considering applying under the revamped IT hardware production-linked incentive (PLI) scheme.
