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Center-Center-DelhiContract manufacturer Dixon Technologies on Wednesday officially signed a joint venture agreement with Taiwan’s Gemtek, with Dixon owning 60% of Dixon Electroconnect, to manufacture optical transceivers and telecom equipment. The strategic move will deepen Dixon’s component manufacturing capabilities and target the high-growth AI and data centre markets, with production set to commence by Q4 FY27. Dixon, which is a major mobile phone manufacturer, and have exported almost Rs5,500 crore worth of smartphones last years, also has a significant export business. In an interview with TNIE, Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, spoke about the company’s exports, the government’s new mobile manufacturing scheme, Indian brands, telecom equipment manufacturing and the perception that India is only assembling products. Edited excerpts:
The government has come up with the new mobile manufacturing scheme, which is different from the previous PLI scheme. How do you view it, and will Dixon participate?
This time, the scheme will help us become more competitive in exports. That is going to be the first focus. The second focus is deepening manufacturing by using more and more local components. That is also a key focus for Dixon. The third element is supporting designing in India and domestic brands. With all these objectives, we are going to be an active participant.
The minister has said several times that after this scheme, we could see Indian smartphone brands emerge and grow. Do you agree?
I also feel so. I think it is a great policy framework and a big opportunity for Indian brands to come up.
How many Indian brands do you think can emerge?
I can't comment on that because I am not a brand owner. But I think there is definitely an opportunity for Indian brands to do well.
What is the current status of the JV between Dixon and Vivo?
The integration process is underway. We are targeting to start trials within this quarter.
You also said Dixon will participate in the telecom equipment manufacturing zone which is set to come in Gwalior. When can production begin?
Atul B. Lall: The scheme has just been launched. I understand that the bhoomi pujan is going to happen shortly. We are going to participate. Once the infrastructure is ready, it takes time to build it. So, yes, we are committed to it.
Question: Why is there a perception that India is only assembling products rather than manufacturing them?
Atul B. Lall: Please appreciate that what is happening in India is not just assembly. That is a myth. It is deep manufacturing, and deep manufacturing happens all over the world.
Question: But several industry leaders say companies are essentially doing assembly and could leave if government incentives are withdrawn.
Atul B. Lall: I think we have to change the narrative. It is a misunderstanding.