Dixon to See 50% Revenue Growth in 2024, Driven by Mobile Phone Division

Indian electronics maker Dixon Technologies (NSE: DIXON) is expected to see around a 50% year-over-year increase in revenue in 2024, driven by growth in its mobile phone & electronic manufacturing services (EMS) business. Based on Visible Alpha consensus, Dixon’s mobile & EMS division, which accounts for nearly 56% of its total revenue, is expected to see revenue grow by 96% year over year in 2024.

This growth can be attributed to several key developments. In April, Dixon announced that its subsidiary, Padget Electronics, had entered into an agreement with China’s Longcheer, an original design manufacturer (ODM), to manufacture and market smartphones for global brands using Longcheer’s design and technology. In February, Dixon partnered with BBK Group, a Chinese mobile manufacturer, to produce smartphones for its brands, such as Oppo, Vivo, and Realme. Padget also has an agreement with Xiaomi to manufacture smartphones and other related products.

Dixon is also in the process of acquiring a majority 50.1% stake in Ismartu India, a manufacturing unit of Chinese phone maker Transsion Holdings. Additionally, Dixon’s participation in the Production Linked Incentive (PLI) scheme initiated by the Government of India in 2023 is expected to further boost its revenue growth. These strategic moves are projected to result in a substantial increase in Dixon’s mobile phone production, with estimates indicating a surge of 81% year over year in 2024 to reach 55 million units.