Dixon Technologies eyes growth beyond smartphones to add global clout

Dixon Technologies aims to become one of the world's top five electronics contract manufacturers within a decade, according to Chairman and founder Sunil Vachani. The Noida-based firm, currently outside the global top 10, plans to focus on components, IT hardware, and data centre equipment to boost margins beyond its primary smartphone assembly business.

Chairman Vachani revealed the company's vision during an interview with Bloomberg Television, stating that it aims to reach the top 10 within five years and the top five in the next ten.

Dixon is looking to expand its production of camera modules, which are expected to scale from 70 million units to 180-190 million units over the next 15 to 18 months, through its subsidiary Q Tech. The company is also venturing into servers and defence manufacturing, with a recent partnership with a Taiwanese firm to manufacture optical equipment for data centres. Additionally, Dixon will open a second IT hardware plant in late November, capitalizing on India's import of $15 billion worth of IT hardware.

The smartphone sector accounts for over 90% of Dixon's revenue. The company has received government approval for a smartphone manufacturing venture with the Indian unit of China's Vivo, which will hold 51% and 49% shares, respectively. The venture is set to begin operations in the third quarter of FY27. However, Dixon's core business is facing margin pressure, with a 21% year-on-year revenue rise in the quarter ended June 30, 2026, and a 80 basis point narrowing of mobile margins due to the end of benefits under the first mobile PLI scheme.