Dixon Technologies (India) has entered into an agreement with Flipkart to design and manufacture products like televisions, washing machines and other electrical appliances for the e-commerce major's 'MarQ' brand. Flipkart has recently launched its private label 'MarQ' for appliances.
Dixon Technologies (India) Ltd is currently trading at Rs 2706.35, up by Rs 46.6 or 1.75% from its previous closing of Rs 2659.75 on the BSE. In September 2017, Dixon Technologies had listed with a 54% premium over its offer price.
Dixon manufactures consumer durables, lighting, mobile phones and home appliances, which made up for 34%, 22%, 33% and 8% of FY17 revenue respectively. It also provides reverse logistics services (2.6%) including set top box and mobile repairs. Dixon provides integrated end-to-end product and solution suite to original equipment manufacturers (OEMs). The offerings range from global sourcing, manufacturing, quality testing and packaging to logistics.
The company is also an Original Design Manufacturer (ODM) of lighting products, LED TVs and semi-automatic washing machines in India. Its key customers include Panasonic, Philips, Haier, Gionee, Surya Roshni, Reliance Retail, Intex Technologies, Mitashi and DishTV.
Dixon has a low working capital cycle, stable operating cash flows and high returns. Dixon’s revenue and reported net profit have grown at a CAGR of 34% and 78% respectively (FY13-17).