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Dixon Tech eyes Rs5,000 crore turnover in three years, prepares for IPO

LiveMint logoLiveMint 15-08-2017 PTI

New Delhi: Original design manufacturer Dixon Technologies, which is going for a Rs700 crore IPO next month, aims to cross Rs5,000 crore turnover in next three-four years banking on opportunities emerging from domestic market and exports.

The Noida-based Dixon is looking to raise Rs700 crore from the initial public offering (IPO), the proceeds of which will be used for expansion of the company, which manufactures appliances like washing machines, LED TV, lighting products and mobile phones.

“We are looking to raise around Rs700 crore. We are targeting the first week of September. We have got the approvals from Sebi for DHRP,” Dixon Technologies CMD Sunil Vachani told PTI.

The IPO would also fund the company’s new plant in Tirupati, Andhra Pradesh, for manufacturing LED TV and LED bulbs besides paying off debt and expansion of other facilities.

“One of the reason for IPO is to fund the projects of backward integration. We are getting into plastic and sheet metals products in-house. Even for TV, panels would be made in-house,” Vachani said.

The public issue comprises fresh issue of shares worth Rs 60 crore and an offer for sale of up to 3,753,739 equity scrips by the existing shareholders.

In FY 2017, Dixon had a turnover of Rs2,400 crore. “We are almost growing over 20% and next year, we hope to have a turnover of Rs3,500 crore,” he added.

Asked if Dixon would cross Rs5,000 crore mark in next three years, Vachani said he is looking forward to it. The company had started manufacturing mobile phones two years ago and has a capacity of 10 million units per year.

“We are planning to invest in backward integration to PCB (printed circuit board) in-house and this would be done in few months,” Vachani added.

Dixon, which has a capacity of 9 million LED bulbs per month, is also exporting its lighting products to around 20 countries in the Middle-East and Africa among others.

“We are taking our LED bulb manufacturing capacity to 14 million per month, which would put us among top three globally,” said Vachani.

While, in the home appliances segment, the company has a capacity to roll out 8 lakh semi-automatic washing machines.

Besides, the company also provides repair & refurbishment services of mobile phone, TV panels and Set Top Boxes.

The company, which is indirectly participating into the government’s plan to develop smart cities, said it would bring huge demand for smart LED lightings.

“We would be partnering with our customers in the smart city projects and bid tender with them. It would be partnership with the brand,” he added.

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