- 12 May 2025
- ICICIdirect Research
DIXON WHOLLY OWNED SUBSIDIARY PADGET ELECTRONICS HAS ENTERED INTO A CONTRACT MANUFACTURING AGREEMENT WITH NXTCELL INDIA
DIXON - 14313 Change: 2.00 (0.01 %)News: Dixon’s wholly owned subsidiary Padget Electronics has entered into a Contract Manufacturing Agreement with NxtCell India to manufacture smartphones for the French tech brand Alcatel in the Indian market. The partnership will start with 1.2 mn annual smartphone production and will expand to other portfolio devices gradually. Alcatel's first batch in Indian market is expected in next 8-10 weeks while Dixon is expected to start the manufacturing process in the next 12-18 months. NxtCell aims to tap into the ₹20,000–₹25,000 smartphone segment.
View: Alcatel is re-entering Indian market which is currently dominated by chinese phones. From Dixon's perspective, the scale at which company is now operating coupled with its backward integration plan acts as an edge for it to sign such new clients. Alcatel's success in Indian market is yet to be proved. However, this partnership shall further strengthen Dixon's manufacturing excellence and execution capabilities.
Impact: Positive