Dixon Targets Uttar Pradesh for Next Manufacturing Push: Vachani

Uttar Pradesh has emerged as an attractive region for the development of electronic hubs, said the executive chairman and co-founder of Dixon Technologies, Sunil Vachani. While speaking at BS Manthan, Business Standard’s annual thought leadership summit, Vachani emphasized India\n’s increasing significance in manufacturing and discussed Dixon’s ambition to enhance in-country production and value chain processes. While Chennai is already confirmed as a new plant location, the company is still exploring potential sites for other future projects. Vachani noted that there is rapid growth in the possibilities of Uttar Pardesh, Gujarat, and Tamil Nadu capturing large scale investment opportunities for high-value components like semiconductor chips and display fabs. “Uttar Pardesh has done a tremendous job in recent years. UP is second only to Tamil Nadu with respect to the percentage of mobile phones being produced in India. There is tremendous opportunity in Gujarat too, especially for large scale projects,” he exclaimed. Vachani noted that while there are multiple options available, the company has not yet selected another primary plant location apart from Chennai. However, they are seriously considering the states the government has been pushing forward for electronics and information technologies production.

Dixon Technologies (India) has locations in Noida, Dehradun, Tirupati, and Ludhiana for its manufacturing facilities.  

Dixon plans to begin production of display modules by October, with a camera module plant to follow shortly after. India’s unique import-export policy with no restrictions and an extremely skilled workforce allow for very strong positioning in the global electronics supply chain, which is where India’s competitive edge is.

Worldwide electronics production  

Dixon is also looking at the international electronics manufacturing opportunity in light of the changing geopolitics and US tariffs that open new doors for Indian manufacturers. Vachani stated that with realignment of supply chains, new trade barriers, and globalization, India can capitalize on the opportunity. The U.S. has a large market for LED television, importing USD 10 billion, and mobile phones level, importing 60 billion every year. But according to Vachani, India also needs to face the challenges of reciprocal tariffs and focus on negotiating free trade agreements with FTA for electronic exports.

Get live updates on BS Manthan here: BS Manthan Live updates.

During the topic “Manufacturing in India: A Reality?,” Vachani mentioned, ‘the discussion about India becoming a manufacturing hub has ended.’ “The numbers speak for themselves,” he said. Domestic consumption of IT and electronics grew to $140 billion with exports of electronics rising to the country’s third largest category. Exports of mobile phones are projected to surpass $20 billion this year alone. He further stated that India has made remarkable progress compared to other economies in the world, but now the focus should be on increasing domestic value addition.

As per the latest statistics, India is expected to have approximately 20 percent value addition in electronics manufacturing, which is lower than Vietnam’s 25 to 30 percent, and also much lower than China’s 50 percent. Dixon plans to invest into the manufacture of major parts like display panels, camera modules and mechanical components in order to increase this region's value add over the next few years.

India’s potential as a manufacturing hub is promising 

Dixon expects to start making display modules by October 2025, and will construct a new factory for camera modules shortly afterwards. Vachani, for his part, continues to expect India to emerge as a manufacturing hub due to increasing domestic demand, higher exports and favorable govt policies.

“He said with us, India will not just be a manufacturing destination but will also have the capacity to produce sophisticated electronics in the global market.” 

Vachani also spoke about the popular parallel drawn between Dixon with Foxconn. “We are optimistic about a future when Taiwan will have companies yearning to be the Dixon of Taiwan,” he noted, adding, Foxconn has done a very good job, but Dixon has come a long way too. “The journey is far from over,” he said.

The flagship thought leadership summit run by Business Standard was held at the Taj Palace New Delhi from February 27 to 28. This event held particular importance as the publication was celebrating its 50 year anniversary.