Dixon Expands into Component Manufacturing as Tata Plans Rs 2,000 Cr Push

India’s electronics production industry is entering a significant new stage. Dixon Technologies has announced its entry into the manufacturing of electronic components, marking a significant milestone for both the company and the wider "Make in India" movement. Initially, Dixon will manufacture components for captive requirements and later expand to global markets.

"We have already rolled out a project for display modules. We are evaluating various other component categories like camera modules, mechanical enclosures and also lithium ion batteries. So we are seriously evaluating and we will be deeply participating in ECMS," said Dixon CEO Atul Lal.

In parallel, Tata Electronics is reportedly planning a ₹2,000 crore investment under the government’s ₹23,000 crore electronics components manufacturing scheme (ECMS). While Tata Electronics declined to comment, the move signals strong momentum for electronics manufacturing services (EMS) in India.

The government’s ECMS initiative, with an outlay of ₹22,919 crore, is expected to create 91,600 direct jobs and attract ₹59,350 crore investment. Union Minister Ashwini Vaishnaw emphasized that only companies with a design house and six sigma quality standards would qualify for incentives.

"We are going to be internally discussing this," Lal added, supporting the government’s focus on quality.

ELCINA President Atul Lal, IESA President Ashok Chandak, and ICEA Chairman Pankaj Mohindroo are the industry leaders who supported the initiative, claiming it will improve value addition and ensure long-term sustainability for India's rapidly expanding electronics sector.