Dixon Tech’s subsidiary will manufacture Google Pixel smartphones

Electronics manufacturing services provider Dixon Technologies on Friday said its subsidiary Padget Electronics Pvt Ltd in collaboration with Compal Smart Device India Pvt Ltd plans to start mass production of Google Pixel smartphones for Compal’s customer, Google Information Services India Pvt Ltd.

On February 23, Padget Electronics signed a contract manufacturing agreement with Compal to manufacture mobile phones for Compal and its designated customers, according to an exchange filing by Dixon Technologies. Padget Electronics’ production facility is located in Noida.

Margins will improve

Compal has expertise in PC, smart devices, data center devices and LCD product manufacturing. Earlier in the day, Dixon told CNBC-TV18 that he expects his margins to improve by 100-120 basis points in the next 24-28 months, driven by increased manufacturing of mobile components.

The company plans to increase value addition in its mobile segment from the current 17-18 per cent to 35-36 per cent in the next two to three years. Dixon has set a revenue target of ₹35,000-40,000 crore for 2024-25 (FY25).