Taiwanese computer hardware company Acer has hired national electronics manufacturing services company Dixon Technologies to manufacture its laptops in India, the two companies said in a joint statement Wednesday. The facility will have the capacity to manufacture up to 5 lakh of Acer laptops per year.
Dixon Technologies is one of the contract manufacturers who qualified for the PLI program for computer hardware.
In an interview with CNBC-TV, Atul Lall, Managing Director of Dixon Technologies India, discussed the partnership with Acer and the company’s prospects.
He said: “This is a big step for us. We are one of the beneficiaries of the computer hardware PLI scheme. As part of this scheme, we have teamed up with Acer which is undoubtedly an iconic brand. So we started to manufacture laptops for Acer.
Regarding income, Lall said, “The income targets in this case are Rs 300 crore, Rs 600 crore, Rs 1,600 crore and Rs 2,400 crore. So I think in the first year we should be able to reach the minimum threshold of Rs 50 crore, but from the second year the upward ceiling described in the PLI scheme of Rs 600 crore, Rs 1 600 crore and Rs 2,400 crore we should be able to achieve.
When it comes to capital spending, their assets are fungible as prescribed by the PLI regime – that would be close to 20 crore, Lall shared.
He mentioned that the company is targeting revenues in the range of 17,000 to 17,500 crore rupees in the next fiscal year.
Regarding the order book, he said: “On mobile, we have a very healthy order book and we are confident to exceed the upward limit of the PLI program. The new laptop vertical, we will also be launching our telecoms branch in which we have a joint venture with Bharti for IoT devices. Then we are also launching monitors, LEDs, which will happen in the next quarter. “
Lall added, “Then there will be growth in each of our verticals. We have just opened a fully automatic top loading washing machine factory in which we have a strategic partnership with Bosch. So in all verticals there are triggers, these new verticals are going to help us reach that number. “
Regarding the pressures on commodity prices, he said: “There has undoubtedly been pressure due to the increase in commodity prices and there is a certain lag in the transmission of the commodity. increase in prices to our principals. Lately, though, I’ve been seeing that on both the commodity price side and the tariff side, there is some kind of easing. So in the short term, there will be pressure on margins, but I think that over time, we should be able to pass it on to our clients.
(With text entries from PTI)
For a full management commentary, watch the video.
(Edited by : Dipikka Ghosh)
First publication: STI