Atul Lall, MD, Dixon Technologies, in an interaction with CNN, mentioned that his company will start manufacturing mobile phones by Q4 2021
India-headqurtered Dixon Technologies has not received any official nod from the government authorities in respect to the recently announced PLI schemes. A report by CNBC TV18 pointed out that Dixon has submitted two applications for the PLI scheme.
The report quoted Lall saying that Dixon Technologies is extremely excited about the big opportunity. He also mentioned that his company has got contracts for the local as well as global markets.
Rs 8,000 crore through mobile manufacturing
If both the applications submitted by Dixon Technologies are approved by the government of India, then the company will be able to generate revenues worth Rs 8,000 crore from mobile manufacturing. Lall mentioned the same as a quantum jump for the company (if approved).
Dixon, for 2018-19 period, had reported a revenue figure of Rs 29,844 million. The company has ten manufacturing facilities. These are located in the states of Uttar Pradesh, Uttarakhand and Andhra Pradesh and are supported by three R&D centres (two are located in India and one in China).
Sunil Vachani, executive chairman, in Dixon’s annual report for 2018-19 wrote, “Despite all the volatility presented by the market conditions, Dixon achieved remarkable results in FY 2019, boosting five per cent growth in revenue to Rs 2,99,008 lakhs.”
Vachani, in the same report, had also mentioned that Dixon’s strategy for the coming year would be to diversify its product pipeline and enter into newer segments to capitalize on the growing market opportunity in domestic as well as international
market.
Apart from Lava and Dixon, Indian companies like Bhagwati (Micromax), Padget Electronics, Sojo Manufacturing Services, and Optiemus Electronics have applied under the domestic companies segment under the PLI scheme.
The PLI scheme promises incentives in the range of four to six per cent for mobile manufacturing companies. These are based on incremental sales calculated taking 2019-20 as the base year. The government of India has started inviting applications for the scheme through Industrial Finance Corporation of India (IFCI).
