Exclusive: In chat with Anil Singhvi, Dixon Tech CFO Saurabh Gupta says will benefit from PLI scheme, production capacity to hit 27-mn mark in 2 years

Padget Electronics, an arm of contract manufacturing company Dixon Technologies, is one of the five domestic companies among a global total of 16, whose application has been approved for mobile phone manufacturing under the Centre’s Production Linked Incentive (PLI) scheme. Calling this a big opportunity, Saurabh Gupta, Chief Financial Officer (CFO) at Dixon said that the company was eagerly waiting for this development to happen. 

In a chat with Zee Business Managing Editor Anil Singhvi, Gupta said that he expects the company to get big contracts for manufacturing handsets from here. This will not only be for the domestic markets but also for the export markets, he added. Now that the company has got a government go ahead, it will expedite the project implementation process, he further said.  

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#NewsParViews | Q4FY21 में प्रोडक्शन लिंक्ड इंसेंटिव (PLI) स्कीम के तहत उत्पादन होगा, स्मार्टफोन में क्षमता बढ़कर 2.7 करोड़ होगी: सौरभ गुप्ता, CFO, डिक्सन टेक्नोलॉजीज#DixonTechnologies @AnilSinghvi_ pic.twitter.com/XclhuSoC79

— Zee Business (@ZeeBusiness) October 7, 2020

The company will be able to start production by Q4 FY21, the CFO said. Dixon currently has a production capacity of 11 million mobiles which could be increased by another 16 million through the PLI scheme leading to overall capacity to 27 million phones, he said. This will take another 2 years, Gupta said. 

Under the PLI scheme, the government intends to increase mobile phone production by six times in next five years. 

The CFO said that the company can earn revenues around 30,000 cr in the next 5 years including this financial year. The discussions with several mobile phone companies are ongoing, he said.  

The company gave two application on behalf of two of its subsidiaries. The government has approved one application. 

On this Gupta said that the application with regards to the second subsidiary may be accepted in future. He said that the government had announced that it will approve 5 foreign and 5 domestic applicants only.    

The government will be focusing on the manufacturing of mobile phones under the PLI scheme.  

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Dixon does contract manufacturing for electronic items like mobile phones, set top box, television and lights. It manufactures these items for companies like Xiaomi, Samsung etc.