Dixon eyes Uttar Pradesh for next manufacturing push, says Sunil Vachani

Sunil Vachani, co-founder and executive chairman, Dixon Technologies spoke on the need to deepen local production and value addition at BS Manthan

Uttar Pradesh is emerging as an attractive destination for electronics manufacturing hubs, said Sunil Vachani, co-founder and executive chairman of Dixon Technologies.

 

Speaking at BS Manthan, Business Standard’s annual thought leadership summit, Vachani highlighted India’s growing stature as a manufacturing hub and outlined Dixon’s plans to deepen local production and value addition.

 

  While Chennai is confirmed as the next plant location, Dixon is still evaluating sites for future projects. Vachani mentioned that Uttar Pradesh, Gujarat, and Tamil Nadu are emerging as top contenders for large-scale investments, particularly in high-value components such as display fabs and semiconductor manufacturing.

 

 

“Uttar Pradesh has done a tremendous job in recent years. Nearly 60 per cent of the mobile phones sold in India are manufactured in UP. Gujarat, too, is an attractive destination, especially for large-scale projects,” he said.

 

Despite multiple options, Vachani said Dixon is yet to finalise its next large manufacturing site beyond Chennai but is actively considering the states being promoted by the government for electronics and IT production.  Dixon Technologies (India) has manufacturing plants in Noida, Dehradun, Tirupati, and Ludhiana. 

 

Dixon expects to begin manufacturing display modules by October, followed by the launch of a camera module plant. The company sees India’s competitive advantage in its zero-duty import-export policy and highly productive workforce, positioning it as a key player in the global electronics supply chain.

 

Global electronics manufacturing

Dixon is also eyeing the global opportunity in electronics manufacturing, particularly as geopolitical shifts and US tariffs create openings for Indian manufacturers. With global supply chains undergoing realignment and new trade barriers being introduced, Vachani said India stands to benefit significantly. The United States imports LED televisions worth $10 billion and mobile phones worth $60 billion annually, presenting a major market opportunity. However, Vachani cautioned that India must address the issue of reciprocal tariffs and work towards securing a free trade agreement (FTA) that covers electronics exports.

 

On job creation, Vachani said that over one million new jobs have already been created in the mobile manufacturing sector alone, further reinforcing the sector’s role in India’s economic growth.  Follow LIVE updates on BS Manthan here: BS Manthan LIVE updates

 

Speaking on the theme ‘Manufacturing in India: A Reality?’, Vachani said the debate on whether India can be a manufacturing powerhouse is over. “The numbers speak for themselves,” he said. Vachani highlighted that domestic consumption of IT and electronics products has surged to $140 billion, with electronics exports emerging as the country’s third-largest category. Exports of mobile phones alone are expected to exceed $20 billion this year. He emphasised that while India has made significant strides in manufacturing, the focus must now shift to deepening domestic value addition.

 

Currently, the value addition in India’s electronics manufacturing sector stands at approximately 20 per cent, whereas Vietnam has reached 25-30 per cent and China remains at 50 per cent. Dixon aims to increase this figure to 30-35 per cent within the next few years by investing in the production of key components such as display panels, camera modules, and mechanical parts.

 

Optimistic on India’s potential as mfg hub

Dixon is set to begin manufacturing display modules by October 2025, followed by a new plant for camera modules soon after. With rising domestic demand, growing exports, and favourable government policies, Vachani remains optimistic about India’s long-term potential as a global manufacturing hub.

 

“With the right policies and industry collaboration, we will not just be a manufacturing destination—we will lead in high-value electronics production,” he said. 

Vachani also addressed the popular comparison of Dixon with Foxconn, the Taiwanese electronics giant. “We look forward to a future where Taiwanese companies aspire to be called the Dixon of Taiwan,” he remarked, adding that Foxconn has done a great job, but Dixon has also come a long way. “Our journey is far from over,” he said.

 

Business Standard’s flagship thought leadership summit was held from February 27 to 28 at Taj Palace in New Delhi. The event was especially significant as it marked the 50th anniversary of the publication’s founding.