C O R P O R AT E P R E S E N TAT I O N
Dixon Technologies (India) Limited C O R P O R AT E P R E S E N TAT - - PowerPoint PPT Presentation
Dixon Technologies (India) Limited C O R P O R AT E P R E S E N TAT - - PowerPoint PPT Presentation
Dixon Technologies (India) Limited C O R P O R AT E P R E S E N TAT I O N Disclaimer This presentation and the accompanying slides (the Presentation), which have been prepared by Dixon T echnologies (India) Limited (the Company),
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Dixon Technologies (India) Limited
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Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dixon T echnologies (India) Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No
- ffering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the
Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Corporate Overview
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Contents
Industry Landscape
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Road Ahead
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Corporate Overview
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About Dixon Technologies (India) Limited
Leading
Player in Electronic Manufacturing Service (ESM) space in India
Integrated
Business model has helped derive greater
- perating efficiencies
Diversified
Product portfolio covering multiple electronic segments
Vision
T
- be the most preferred
& trusted manufacturing & solution partner to brands
- perating across verticals
Leading
Brands of electronics and home appliances as our clients
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Our Journey
Assembly Capability Achievements Manufacturing
CTV and VCR assembly started Joined hands with the Global Consumer Electronics Giants First manufacturing facility operational at Noida
Prescriptive EMS Operations Operational Sophistication
Added assembly of PCBs, DVDs, CFL bulbs & STBs Acquired leading Indian Consumer Durable brands as Customers Established Multi- location footprint
ODM & Backward Integration
Added ODM for CTV, DVD & CFL bulbs 1st Indian company to develop STB-ODM solution Started Sheet metal & plastic moulding
High Value- Added Products
Started LCD/LED TVs, Mobile Phones, CCTVs Reverse Logistics operations with multi-location presence Washing Machine & LED Lighting, Magnetic and power supplies , Security Cameras.
Mid to Late 90s 2000 - 2008 2008 - 2010 Last 9 Years
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Our Product Segments
Home Appliance
12.5%
share in total Revenue Consumer Electronics
40%
share in total Revenue Lighting Solutions
30.8%
share in total Revenue Mobile Phones
11.9%
share in total Revenue Security Devices
3.8%
share in total Revenue Reverse Logistics
1%
share in total Revenue
Note: Figures as on FY 2019
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Consumer Electronics
Key Highlights
- We have the largest capacity of LED television in India of
4.4 million units p.a.
- Our product offerings include a range of products such
as LED TVs ranging from sizes 19 to 65 inches include ATV , 2k, 4k, Smart, Semi smart, Android certified , Linux based TV with AIOT platform and voice control features
- Through this vertical we provide ODM solutions to our
customers
- We also provide end-to-end solution including Auto
Insertion, SMT, LCM Module Assembly
- Dixon manufactures and supplies to marquee clients both
customers domestic as well as international customers
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Consumer Electronics
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Home Appliances
Key Highlights
- The segment is completely based on ODM business model
- We offer the largest product portfolio right from 6 kg to 10 kg
with 140 odd models of multiple Washing Machines.
- We are in the process of initiating production of top loading
fully automatic washing machine from 6kg to 8kg.
- Our cumulative capacity stands at 1 million units p.a
- Leveraging from our strong R&D capabilities in the segment,
we are able to design and produce technologically advanced washing machine for our customers.
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Home Appliances
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Lighting Solutions
Key Highlights
- Through this division, we offer smart lighting solutions including LED
bulbs, emergency bulbs and battens to leading brands in Indian and International market
- Capacity of the segment is 250 million LED bulbs p.a., which is almost
50% India’s requirement
- While, for down lighters our capacity as on September, 2019 is 12 million
p.a. which is almost 25% of Indian requirement.
- Our Lighting division ranks amongst the top ten in the world in terms of
production capacity
- Our products are backed by our strong research and development
capabilities which enables us to develop new and innovative products
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Lighting Solutions
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Mobile Phones
Key Highlights
- We have set-up a new capacity for mobile
phones in Noida which is around 224,000 square feet.
- Our cumulative capacity stands around 40
million units p.a.
- We have initiated the commercial
production of our marquee customers feature phones in our Noida facility.
- We have installed State-of-the-art
infrastructures with SMT and other testing equipments.
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Mobile Phones
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Security Devices
Key Highlights
- Through our fully integrated plant, Dixon
is India’s first Company to manufacture security devices such as CCTV & Digital Video Recorders (DVR’s)
- The capacity of CCTV is 0.7 million per
month while for DVR is 0.15 million per month
- Over the coming quarters, we expect
significant growth in the vertical with improvement in capacity utilization.
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Security Devices
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Reverse Logistics
Key Highlights
- Through this vertical we offer repair
services of LED TV panel, mobile and set top box and refurbishment for STBs, LED TVs, Mobiles, Modems and Computer Peripherals
- Dixon is one of the few companies to
have Panel Repairing Facility
- Dixon is one of the leading company
who offer LED TVs refurbishment
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Reverse Logistics
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Our Plant Locations
Dehradun Plants
270 KM from Delhi UNIT 1 – Lighting UNIT 2- Washing Machine
Tirupati Plants
LED TVs CCTV/DVR HO R&D Centre for CTVs and Lighting
Noida Noida Factories
20 KM from Delhi UNIT 1 – PCB Lighting UNIT 2 – Mobile Phones Unit 3 – Reverse Logistics Unit 4 – LED Lighting
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Key Statistics
FY15 16% FY16 28% FY17 FY18 38% FY19 H1, FY20 35% 27% 33%
ROCE (in %) Total Revenue (J in million)
FY15 12,031 FY16 13,922 FY17 FY18 25,001 FY19 H1, FY20 28,576 29,901 25,523 CAGR 26% FY15 340 FY16 596 FY17 FY18 926 FY19 H1, FY20 1,162 1,405 1,191
EBITDA (J in million)
C A G R 4 3 %
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Brands we serve
Mobile Phones LED TV Lighting Reverse Logistics Washing Machines
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Environment, Community and People Highlights
Environment Community care People
- We are undertaking
initiatives to minimize our impact on the eco-system
- Electricity saving initiatives
within the organisation
- Proper disposal of
hazardous waste Our focus areas of CSR activities include the following:
- Promotion of Child Education
- Contributed to old Age Homes towards the upkeep of
destitutes and abandoned elderly
- Contributed towards eradicating hunger through mid-day
meal programme
- Contributed towards Natural disaster relief fund
- Conducted sanitation drive to ensure free flow of rain
water into sewage and to prevent the clogging of rain water/ sewage on the road.
- 28% female employees
- 33 employees in R&D
team
- H 95.346 million spent
towards employee welfare and benefit expenses
Note: Figures as on FY 2019
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Industry Landscape
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EMS and ODMs Industry Overview
Global Scenario
- The global EMS (Electronic Manufacturing services) and ODM (Original Design manufacturer) is
currently valued at US$ 525.99 billion in 2018 and is anticipated to reach US$ 734.40 billion by 2026 growing at a CAGR of 4.26% between 2019 to 2026.
- Consumer devices such as mobile phones and digital camera accounts for the largest share in
the total revenue of EMS market i.e. 39.5%.
- The ODMs are developing at a faster rate in sectors such as Consumer electronics as compared
to other sectors because of growing demand in the downstream industry and more brands looking to outsource their manufacturing in order to ensure cost-effective pricing
- On account of untapped market potential in developing nations such as India, China and
T aiwan, Asia-Pacific region for EMS and ODM market is anticipated to grow at a CAGR of 4.8%, remain the highest growing segment between 2019 to 2026.
Source: Reports and Data
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India Scenario
- The Indian EMS market is growing at a phenomenal growth
rate and is anticipated to continue the same in the next five years
- Factors such as favourable Government policies, Make in India
initiatives and rising input cost in neighbouring country has augur well for indigenous EMS providers
- The sectors that contribute significantly to the growth of EMS
includes mobile phones, consumer electronics and appliance
- Global giants are exploring opportunities to re-locate their
manufacturing base to alternate location such as India. This is anticipated to provide strong impetus to Indian electronic industry going forward.
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Unique Business Model
ODM and EMS companies like Dixon are more preferred because of the following distinct features:
Focus on precision
On the back of their technology advancement and strong R&D team, manufacturers are more focused on bringing precision to the manufacturing process to minimize defects, while optimising assembly
- perations to improve
productivity.
One-stop solutions
Large brands generally prefer companies who can provide end-to-end solution i.e. right from designing and manufacturing to assembly and distribution of products.
Creative solutions and continuous innovation
ODMs constantly monitor the market trends and upgrade their designs accordingly, providing innovative and improved solution to their customers. As a result, Consumer durable brands prefer to outsource it to the ODMs as they have the required expertise in designing and manufacturing
- f the products.
Cost-effective
Owing to their strategic alliance, global sourcing and backward integration, they tend to provide cost effective solution to Companies with superior quality and minimal defects.
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Road Ahead
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Focus areas
- Constantly innovate and expand product
portfolio with new products
- Capitalise new business opportunities
- Continue to focus on shifting towards ODM
business model across all verticals
- Leverage our Industry experiences and
economies of scale to gain competitive edge
- ver our competitors
- Leverage our Integrated business model to
ensure healthy margins, strong relationship with customers and expand our presence In the international market.
- Build long-lasting relationship with customers
- n the back of mutual benefit and trust
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Profile of Chairman and MD
- Mr. Sunil Vachani is currently the Executive Chairman
- f our Company. He holds a degree of Associate of
Applied Arts in business administrations from the American College in London. He is also the Promoter of our Company and has been associated with us since inception. He is responsible for our Company’s growth and business development. He has over two decades of experience in the EMS industry. He has been awarded the “Man of Electronics Award” by CEAMA, the “Outstanding Citizen Award” by the Sindhi Chamber of Commerce and one of the “T
- p 100 people
influencing EMS” by the ventureoutsource.com. He has held positions like chairman of the Electronics and Computer Software Export Promotion Council of India, Co-Chair of the CII ICTE Committee and vice president of CEAMA. Executive Chairman Managing Director
- Mr. Atul B. Lall, is the Managing Director of
- ur Company. He holds a master’s degree in
management studies from the Birla Institute of Technology and Science, Pilani. He has been associated with our Company since inception. He is responsible for our Company’s overall business operations. He has more than 26 years of experience in the EMS industry. He has served as a member of the Technical Evaluation Committee for Electronic Manufacturing Services under M-SIPS (Electronic Manufacturing Services- EMS) constituted by the DeitY and served as a representative
- f ELCINA on the Committee for Reliability of Electronic and
Electrical Components and Equipment (LITD. 02) of the BIS. He has also authored the book, ‘Gita and India Inc.’.
- Mr. Atul B Lall
- Mr. Sunil Vachani
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Management team
Executive Chairman
- Mr. Sunil Vachani (KMP)
President – COO - Washing Machine
- Mr. Rajeev Lonial
Managing Director
- Mr. Atul B. Lall (KMP)
President – COO - Mobile Phone
- Mr. Pankaj Sharma
President – COO - Television
- Mr. Abhijit Kotnis
Group Company Secretary and Head of Legal & HR
- Mr. Ashish Kumar (KMP)
President – COO - Lighting
- Mr. Vineet Kumar Mishra
Chief Financial Officer
- Mr. Saurabh Gupta (KMP)
Vice President, Business Development
- Mr. Muneesh Dhawan
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Awards and Recognition
B 14 & 15, Noida Phase II, Pin – 201305, U.P. India Phone: +91-120-4737200 | E-Mail: info@dixoninfo.com