Smoothen Chinese partnerships in electronics industry: Dixon MD

CHENNAI: Electronics goods player Dixon Technologies, which has entered into JV deals with players such as Vivo, has urged govt to smoothen approvals for Chinese partnerships to ramp up component manufacturing in the country.

“Today China's domestic economy is also going through challenges. They are keen for markets and partnerships and here we are talking about the majority stake staying with India. When you partner with them, you can learn and then improve the technology… Our border countries are at a stage where we can leverage their economic woes,” Dixon Technologies MD Atul Lall said at an event here.

Lall said China, which is currently leading in the electronics industry, has learned from other countries in the past and there is no necessity to “reinvent the wheel”. He added that collaborations, investments, technology and talent are crucial for building domestic supply chains.

Since Covid outbreak, govt has put all investments from China under scrutiny and is not allowing companies that have set up shop in India to ramp up investments, prompting several of them to enter into JVs with Indian players.

Dixon has been a major beneficiary, entering into a 51:49 JV with Vivo to make smartphones and other devices. Besides, last June, it entered into a deal with China’s HKC to make display modules and for assembly devices. It has also acquired a 50.1% stake in Ismartu India, a subsidiary of China-based Transsion Technology, which makes smartphones for brands such as Tecno, Infinix and Itel.

Several companies are lobbying with govt to ease the restrictions on FDI and visas, but the Modi administration has been unrelenting giving top priority to security. Even last year’s Economic Survey had made a case for easing FDI curbs, but govt distanced itself from it.

Dixon Technologies’ IT hardware manufacturing unit in Chennai for HP and ASUS is expected to be ready by May 2025. Lall said the facility will have a final capacity of around three and a half million laptops and plans to initiate backward integration by making SSDs, power supplies closures in nine months.


Stay informed with the latest business news, updates on bank holidays and public holidays.

Unlock Investment Potential: Enroll in ET's Stock Valuation Workshop - Batch 3. Secure Your Spot Now!