Message from the Corner Office
With immense pleasure I present to you the first annual report of Dixon TechnologiesIndia Limited post our listing on the Indian stock exchanges on 18th September2017. This has been a landmark year with our stock prices debuting on BSE at a premium of~54% from the offer price.
Dixon is a leading design focused product and solutions company and amongst thepreferred OEM for some of the leading global and domestic consumer electronics companieswith strong presence in LED TV LED bulbs CFL bulbs Washing Machines mobile phonesDVRs and CCTVs segments. Our recent expansion into reverse logistics further strengthenedour business model which is primarily focused on creating greater value for ourstakeholders.
Glancing back at 2017-18 the timing of Dixon's listing on the Indian bourses could nothave been better. India continues to be among the fastest growing economies of the worlddespite myriad challenges such as increased fiscal deficit GST implementation and aftereffects of demonetization. Dixon is moving swiftly and daring to innovate in an attempt toaddress the changing consumer needs. We are the brand behind some of the leading brands inthe world producing electronics that touch the lives of millions of people.
Dixon is attractively placed to capitalize on the emerging opportunities of the dynamicelectronics industry where technologies and consumer preferences change rapidly. Both thedemand and production of electronics is expected to grow at a CAGR of 41% to $400 billionand 27% to $104 billion respectively by 2020 courtesy the government's support towardselectronics industry under the 'Make in India' initiative. Indian electronics industry isexpected to emerge as one of the preferred destinations for electronics manufacturing inSouth Asia.
To pare down the amount of imports by Indian Electronics industry it is important thatour products are both designed in India and made in India. This is where our ODMcapabilities can add value to our business with a strong in-house design team. The ODMsector is expected to experience a robust demand with the rise in the requirements forbest value design. Asia Pacific region is emerging as the center of electronicsmanufacturing thus opening up opportunities for the OEM sector. The EMS companies thatprovide both PCB manufacturing and EMS services help the company to offer bettervalue-added products to customers.
In India repair and refurbishment of electronics is important from the end consumerpoint of view. Therefore it is expected to grow with the increase in demand of repair andrefurbishment of electronics and the rising relevance of e-waste.
The fiscal gone by was marked by a host of changes for our company. We came up with anIPO and opened a new factory in Tirupati Andhra Pradesh that will help us widen ourpresence in South India with several new contracts being entered into with some of theleading brands. This unit will also help the Company in exporting its products globally asit has close proximity to the three Major ports.
We stand as among the leaders in OEM for consumer electronics products in India. Withour business expansion we also increased our team size accordingly. During the year ourin-house design capabilities received a further boost with a recognition from Departmentof Scientific and Industrial Research for our R&D center. Further the Companycommenced production of Liquid Crystal Module (LCM) line at Tirupati facility added newcustomers across all verticals and the Company has invested in Backward integration whichis in line with the strategy of the Company.
Leaving one eventful year behind and embarking on a new one on behalf of the Board ofDirectors I would like to convey my genuine appreciation towards all our colleagues fortheir hard and committed work. I would also like to give a heartfelt thank you to all ourshareholders for their consistent confidence in us which keeps us inspired to worktowards creating value for them.