Dear Shareholders
With the pandemic and its adverse impacts gradually waning the world is geared towardsa sustainable economic recovery.
Our performance is a reflection of our potential to grow rapidly create value for ourstakeholders and contribute to making India the powerful hub for electronic hardwaremanufacture.
There are however downside risks such as geopolitical concerns weighing on globalsupply chains and driving inflation of commodities and crude prices in particular.
The tension however will not have long-lasting impact on Indian industries. Inflationis expected to stabilise over the medium term with the RBI's liquidity tighteningmeasures. Besides global supply chain strategies such that are aimed at diversifyingbusinesses and operations into stable economies and geographies could expedite India'semergence as a dominant manufacturing hub from a services hub. Additionally following acritical shortage in the supply of semiconductors due to the sudden surge in demand duringthe pandemic countries such as India are looking towards attracting investments in thesemiconductor space. Attractive policies geographical advantages and low corporate taxfor manufacturers make India one of the most appealing destinations for large companies todiversify into.
The Production Linked Incentive (PLI) Scheme introduced by the Government of India isexpected to drive India's transformation into a global manufacturing hub by incentivisingrapid expansion of manufacturing scale by various industries and making it competitivethrough a robust component ecosystem which was previously lacking. The effects of thescheme are already apparent in the 1 consumer Electronics sector with the totalconsumption closing in on a USD 130 billion of which USD 75 billion were indigenouslymanufactured.
Withing the consumer Electronics space smartphones in particular have one of thefastest-growing markets in India.
The exports which currently stand at USD 8 billion can be expected to reach up to USD100 billion within a span of half a decade.
Not only is Dixon right in the thick of this transformative change it is one of theprimary players leading the change. While various government scheme and policies enableus to mitigate risks and optimise cost our Company is set to become a formidable andglobally competitive player in the market. In FY 2021-22 our Company's revenue fromoperations stood at Rs.10697 Crore registering a growth of 66% over FY21. Ourconsolidated net profit saw a growth of 19% YoY to Rs.190 Crore.
Our aim is to move towards indigenously designing and manufacturing products. Towardsthat end we aspire to increase the mix of ODM products in our portfolio while maintainingour growth in OEM products. Additionally we are venturing into OEM of laptops wearableshearables and consumer-end telecom products which down the lane would also witness a shifttowards ODM.
We also plan to foray into high-tech manufacturing of network equipment.
While we have a significant footprint in the consumer Electronics space we recognisethe immense potential the IT hardware sector holds in the Indian market where USD 5billion worth of equipment is imported annually. Partnering with some of the mostdistinguished global brands Dixon is well poised to leverage these opportunities.
Going forward we are continually working to increase value generation throughstrategic collaborations.
We use these alliances to boost our production skills diversify our offerings andexpand into newer segments and markets. Collaborations with various brands and partnersalso serve as a platform for the design and production of products adapted to the demandsof global consumers.
The growing use of the internet and interconnected devices is altering the way thesociety and industries work. Furthermore our transformational shift towards Industry 4.0seeks to make manufacturing and associated processes such as supply chain operationsquicker more efficient and more customer-centric. We are also moving beyond automationto optimise and discover new business prospects and models. Through strategic efforts weare making steady progress toward our goal and remain steadfast in our determination toaccelerate the activities required to realise our goals. We intend not just to increaseour overall business but also to invest in organic growth and enhance our R&Dcapabilities.
Our growth aspirations the stellar performance demonstrated by our Company and thesalience of our brand are catalysed by the indomitable spirit of our employees. I takethis opportunity to thank all our team members and stakeholders for their unwaveringsupport faith encouragement and dedication. I would also like to express my heartfeltappreciation to all of our customers the Indian government and other business associatesfor their enduring trust and support.
Our performance is a reflection of our potential to grow rapidly create value for ourstakeholders and contribute to making India the powerful hub for electronic hardwaremanufacture.
Regards Sunil Vachani
Chairman Dixon Technologies (India) Ltd.
