Google Pixel Phones To Be Made By Dixon And Compal In India

Dixon Technologies India has inked a strategic manufacturing partnership with Taiwan's Compal Electronics to produce Google Pixel smartphones through its subsidiary, Padget Electronics, says a report by DigiTimes. 

The production of Pixel devices will be carried out at Padget's manufacturing facility located in Noida, India.

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Padget Electronics's Agreement With Taiwan's Compal

On February 23, Padget Electronics formalised a contract manufacturing agreement with Compal, enabling the production of mobile phones for Compal and its designated clients, as disclosed by Dixon Technologies in an official exchange filing. 

Compal, known for its expertise in manufacturing personal computers, smart devices, data centre equipment, and LCD products, brings significant technical capabilities to this collaboration.

Dixon anticipates significant improvements in its financial performance, projecting margin enhancements of 100-120 basis points over the next 24-28 months. This optimism stems from the company's strategic focus on increasing mobile components manufacturing. 

The company has ambitious plans to elevate value addition in its mobile segment from the current 17-18 per cent to 35-36 per cent within the next two to three years.

For the fiscal year 2024-25 (FY25), Dixon has set a robust revenue target of Rs 35,000-Rs 40,000 crore. 

Saurabh Gupta, the Chief Financial Officer of Dixon Technologies, provided insights into the company's performance, as quoted by CNBC TV18, noting that they have already achieved approximately Rs 18,600 crore in the first half of the year. 

Gupta expressed confidence that the second half would outperform the first, acknowledging that the initial quarter (April-June) progressed somewhat slowly, with significant customer ramp-up occurring during the second quarter (July-September).