Dixon Technologies (India) Limited
CORPORATE PRESENTATION DISCLAIMER
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dixon Technologies (India) Limited (the “Com- pany”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or sub- scribe 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 offering 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 in- dustry 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
Dixon Technologies (India) Limited Technologies Dixon 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.
01 Corporate Presentation CONTENTS
04 13 24
CORPORATE SEGMENT LEADERSHIP
Dixon Technologies (India) Limited Technologies Dixon OVERVIEW OVERVIEW TEAM
02 Corporate Presentation CORPORATE OVERVIEW ABOUT DIXON TECHNOLOGIES
Leading Diversified Leading Integrated Vision Player in Electronic Product portfolio cov- Brands of electronics Business model has To be the most preferred Manufacturing Service ering multiple elec- and home applianc- helped derive greater & trusted manufactur- (EMS) space in India tronic segments es as our clients operating efficiencies ing & solution partner to brands operating across verticals Dixon Technologies (India) Limited Technologies Dixon
04 Corporate Presentation OUR EXISTING PLANT LOCATIONS
Dehradun Factory Noida 270 KM from Delhi HO, R&D Centre for UNIT 1 – Lighting (1.74 Lac Sq Ft) CTVs and Lighting UNIT 2 – Washing Machine (50K Sq Ft) UNIT 3 – Washing Machine (81K Sq Ft) UNIT 4 – Washing Machine (38 K Sq Ft) Noida Factory
20 KM from Delhi UNIT 1 – AC-PCB & Lighting (42K Sq ft) UNIT 2 – Lighting (83K Sq Ft) UNIT 3 – Lighting (21K Sq Ft ) UNIT 4 – Mobile Phones & Reverse Logistic (2.23 Lac Sq ft) UNIT 5 – Mobile Phone (21K Sq Ft) Tirupati Plants
UNIT 6 – Mobile Phone (2.06 Lac Sq Ft) LED TVs CCTV/DVR (13.9 Lac Sq Ft) Dixon Technologies (India) Limited Technologies Dixon
05 Corporate Presentation DIXON – SOLID FOUNDATION & STRONG TAILWINDS
Core Strengths
Broad technical skillsets : Brand & Product agnostic Deep capabilities in semiconductors, polymer & metals processing, thermal management, box building, etc. Dixon is the largest Indian player with broadest product and customer experience and highly successful Nimble, Capital track-record Light, Fast End To End Execution Brands moving away from core manufacturing Globally, OEs more focused on branding, sales and futuristic tech
Cost structures of OEMs are prohibitively expensive. Brands leaving base manufacturing to 3Ps Solid track record of the management Make in India, Consume in India Strong government push for ‘Make in India’ in broader Electronics and Mobile category Policy measures to make imports unattractive and incentivising domestic production Dixon Technologies (India) Limited Technologies Dixon
06 Corporate Presentation DIXON – CONSTANTLY EXPANDING ITS PRODUCT PORTFOLIO & COMMANDS UNDISPUTED LEADERSHIP POSITION ACROSS SEGMENTS
1994 2007 2008 2010 2016 2017 2019 2020
Colour TV’s LCD TV CFL Lighting & LED TV & Washing Mobile Phones CCTV and DVR Set Top Box Top Load Washing Reverse Logistics Machines Machines and Medical Electronics Dixon Technologies (India) Limited Technologies Dixon
07 Corporate Presentation DIXON – CONSTANTLY EXPANDING ITS PRODUCT PORTFOLIO & COMMANDS UNDISPUTED LEADERSHIP POSITION ACROSS SEGMENTS (Contd...)
#1
Market position in LED Lighting, LED TV, Amongst Top 5 globally in LED lighting Washing Machine, Security Cameras (capacity, product portfolio, technology and cost competitiveness)
Wide Core strengths in Electronic New Electronic Exports opportunity components, surface mounting, box verticals Opportunity building, semiconductors, silicon, Dixon Technologies (India) Limited Technologies Dixon landscape in thermal management, wound Which offers - Scale and size, scope Addressing Global demand Electronics components, polymer processing, of backward integration & ODM, high plastics & sheet metal asset turnover and strong return ratios
08 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES
One of India’s largest manufacturing plant for consumer electronics
Location Category Capacity (mn pa) Highlights
Tirupati, AP LED TVs 4.4
Largest TV assembly CCTV 8.4 plant
DVR 1.8
Dehradun, Largest Washing Uttarakhand Washing machines 1.2 Machines assembly plant
Noida, UP LED bulbs 300.0 Largest LED bulbs assembly plant Mobile phones 34
Dixon Technologies (India) Limited Technologies Dixon Presence in both North 16 and South India Integrated Increasing backward Manufacturing units integration
09 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES (Contd...)
Backed by dedicated R&D, end to end product development..
R&D Core Global Reverse Capabilities skillsets Sourcing Logistics
In-house 01 3 R&D centers 39 employees designing Deep access to global & End user service enhancement across Noida, including domestic suppliers Dehradun and engineers Repair and refurbishment for set China 02 Plastic Sourcing at scale ensures top box, LED TV & mobiles Moulding competitive prices and aids margins Sheet 03 metal Institutionalised Joint processes Development 04 Wound Deep understanding of electronics manufacturing to develop Model for larger components conceptual ideas sophisticated into deliverable clients Back light unit 05
Dixon Technologies (India) Limited Technologies Dixon products clean room
06 PCB assembly
10 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES (Contd...)
..and fast developing ODM capability In-house capabilities for New design with features like designing complete range magic filter, water fall, ODM share in overall business (%) of semi-automatic washing side scrubber and air dry machines developed in WM category 38
34 Over 2,000 140 models from 6.0 - 10.0 Kg in semi variants of LED bulbs Significant increase in ODM automatic Washing Machine of 0.5–50 watts 27
25 capabilities in lighting
22 22 business from 12% in 2015 to 87% in 2020 Share of ODM business in LED lighting solutions from variants Washing Machine at 100% ~30 0.5W - 50W & include main in fully Automatic Top Ongoing plans to increase
Dixon Technologies (India) Limited Technologies Dixon electronic board designing, ODM in LED TV Loading to be launched in mechanical & packaging design 3Q20
FY16 FY17 FY18 FY19 FY20 FY21
11 Corporate Presentation DIXON – FOCUS ON VALUE PROPOSITION FOR CUSTOMERS
Comprehensive value proposition has led to dominant share of business from reputed customers
Quality & Scale Continuous Cost-effective Integration Innovation Solution
High level quality adherence Able to pass on the benefit of Strong R&D team with proven Global Sourcing & process economics of scale to customers expertise in developing own Frequent quality audits Frugal, flexible & fungible designs Efficient and nimble supply manufacturing base Never posed an “own brand” chain to respond to demand Continuous effort to come out risk to customers In-house capabilities for polymers, fluctuations with Innovative low cost solutions plastics, sheet metal, , surface Cost leadership with integrated ODMs have been approved by mount , box building etc manufacturing set-up and global global Brands Backward integrated sourcing capabilities manufacturing facilities Availability of skilled and unskilled manpower at manufacturing
Dixon Technologies (India) Limited Technologies Dixon facilities
12 Corporate Presentation SEGMENT OVERVIEW SEGMENTS
Consumer Electronics Lighting Solutions Home Appliances Mobile Phones
Set Top Boxes Security Devices Reverse Logistics Medical Electronics Dixon Technologies (India) Limited Technologies Dixon
14 Corporate Presentation LED TV
Dixon USPs End to end solution including Auto Insertion, SMT, LCM Module Assembly 4.4 mn Units p.a Backward integration into LED panel assembly with Largest capacity of LED TV (31% of the India Market re- clean room quirement Product portfolios – 19 to 65 inches, ATV, 2K, 4K UHD, Smart, Semi-smart, Android certified , Linux based TV with AIOT platform and voice control features SMT Capacity of 2 mn p.a Marquee clients – Domestic & Foreign Strengthening R&D for more & more ODM solutions Dixon Technologies (India) Limited Technologies Dixon Key Customers
Xiaomi, Samsung, Panasonic, Philips, Hisense, Nokia, Flipkart, Lloyd, VU, Reliance, TCL, Toshiba, BPL
15 Corporate Presentation LIGHTING PRODUCTS
Dixon USPs India’s most respected manufacturer having largest assembly capacity in lighting industry 300 mn Units p.a Backed by our strong R&D capabilities enabling to Largest capacity of LED bulbs (45% of the India Market re- develop new lost cost innovative products quirement) Backward Integration include Sheet metal, Plastic Among top 10 players in the World Moulding & Wound components
Product portfolios – LED Lights, Ballast, Tube lights, Battens, Downlighters & LED drivers 90% Revenues coming Technology, Product Portfolio & cost competiveness to from ODM solutions capture Global Markets Capacity expansion in Battens & Downlighters – target for 25% share in Indian Market Dixon Technologies (India) Limited Technologies Dixon Key Customers
Philips, Panasonic, Wipro, Bajaj, Luker, Luminous, Crompton, C&S, Orient, Polycab, Syska, Havells, Usha
16 Corporate Presentation HOME APPLIANCES
Dixon USPs Large Semi Automatic Washing Machine plant in India
Semi Automatic: Largest product portfolio of 140 Models 1.2 mn Units p.a ranging from 6 kg -10 kg Largest capacity of Semi Au- tomatic Washing Machines in Leveraging strong R&D capabilities to design and India (28% of the India Market produce technologically advanced washing machine requirement State of art Lab facility with environmental Chamber Backward Integration : Plastic Moulding. Bought out components include Motors, Clutch assembly & PCBA 100 % ODM Solutions both on Process of initiating production of top loading fully Semi Automatic & Fully Auto- matic Top Load version automatic washing machine with 30 models from Q3, FY 20-21 with capacity of 6 lacs Dixon Technologies (India) Limited Technologies Dixon Key Customers
Panasonic, Samsung, Godrej, Bosch, Weston, Haier, Voltas beko, Croma, Koryo, T- series, Micromax, Lloyd, Intex
17 Corporate Presentation MOBILE PHONES
Dixon USPs State of art infrastructure with SMT & other testing equipment Strong Manufacturing & Quality team with in-house developed MES Samsung has outsourced 100% 2G production & units works under their global GMES Rich experience of working with global brands like Samsung, Panasonic, LG & Gionee apart from domestic brands like Micromax, Intex Recently, we got the approval under government’s PLI scheme on mobile phones. The government plans to provide incentives up to Rs 41,000 crs over the next five year period Already closed an agreement with Motorola & Nokia under mobile PLI Scheme In-house manufacturing for key components including PCBA and proposes to build capabilities to manufacture other component / accessories such as battery, chargers, plastic parts etc Infrastructure being set up is also having the capability of doing 5G phones
34 mn Units p.a capacity state of the manufacturing One of the largest EMS players 3 plants in Noida in India Dixon Technologies (India) Limited Technologies Dixon Key Customers
Motorola, Samsung, LG, Nokia, Gionee, Karbonn, Tambo , Infocus, Intex
18 Corporate Presentation SET TOP BOXES
Dixon USPs Started manufacturing Set Top Boxes for Jio (Hybrid & Cable) & Dish TV
Set Top boxes as a new line of business will start contributing significant portion to the company revenues Dixon Technologies (India) Limited Technologies Dixon Key Customers
Hathway, Den & Dish TV
19 Corporate Presentation SECURITY SYSTEMS
Dixon USPs Dixon AIL: 50-50 joint venture between Dixon & Aditya
Infotech Limited to manufacture security surveillance CCTV 8.4 mn units p.a equipments
DVRs mn units p.a The JV partner holds trademark for CP Plus and 1.8 Dahua brands ~30% Market Share in India
State of the art facility in Tirupati Dixon Technologies (India) Limited Technologies Dixon
20 Corporate Presentation REVERSE LOGISTICS
Dixon USPs This vertical offers repair services of LED TV, mobiles & Set-top box
Refurbishment for LED TV, mobile, modems, set-top box & computer peripherals
One of the few companies to have Panel Repairing Facility
One of the leading company who offer LED TVs refurbishment Dixon Technologies (India) Limited Technologies Dixon Key Customers
Panasonic, Xiaomi, Airtel, Dish TV, Mitashi, Vijay sales
21 Corporate Presentation MEDICAL ELECTRONICS
Dixon USPs MOU already signed with Molbio for manufacturing of Quattro Real Time Quantitative micro PCR Analyzer machines
These portable machines are capable of performing 190-200 tests per day of critical infectious diseases including COVID-19
This technologically driven machines manufactured at manufacturing facility situated at Tirupati, Andhra Pradesh, India
Recently validated and approved by Indian Council of Medical Research (ICMR) to conduct COVID-19 tests
Simple to use & provide results within one hour of sample collection
Results can be seen on the screen or printed or shared wirelessly through GPRS , Wi-Fi & Bluetooth to any remote device
Strong demand for the kits from Govt hospitals, private diagnostic laboratories & Global Markets Dixon Technologies (India) Limited Technologies Dixon
22 Corporate Presentation KEY HISTORICAL FINANCIALS
Total Revenue (INR crs) EBITDA (INR crs) ROCE (in %) 36% 37% CAGR CAGR 288 6,450 38 35 4,405 228 33 31.4 28 27 2,990 2,858 141 2,500 117 93 1,392 60
FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Dixon Technologies (India) Limited Technologies Dixon
23 Corporate Presentation LEADERSHIP TEAM HIGHLY EXPERIENCED MANAGEMENT TEAM WITH LEAN ORGANISATIONAL STRUCTURE..
Mr. Sunil Vachani 27+ Mr. Atul B Lall 28+ Mr. Saurabh Gupta 18 3 Mr. Abhijit Kotnis 30+ 2 Mr. Vineet Mishra 25 16 Mr. Rajeev Lonial 33 10
Executive Chairman Vice Chairman and Finance, Accounts and Commercial Consumer Electronics Lighting Home Appliances Managing Director American College in London Group CFO COO Television COO Lighting COO Washing Machine (Business Administration) BITS Pilani (Masters in Management)
Dixon Technologies (India) Limited Technologies Dixon Mr. Pankaj Sharma 31 10 Mr. Ashish Kumar 17+ 3 For more details scan the QR Code Mobile & CCTV Legal & Secretarial/ HR Years of professional experience COO Mobile Phones Gr. Company secretary, Head- Legal & H.R. Years of professional experience with Dixon
25 Corporate Presentation COMPANY LEADERSHIP IS WELL SUPPORTED BY AN EXPERIENCED BOARD OF DIRECTORS
Mr. Keng Tsung Kuo Mr. Manoj Maheshwari Ms. Poornima Shenoy Dr. Manuji Zarabi Dr. Rakesh Mohan
MBA, Masters - Electrical FCA, FCS, MBA Marketing PG Diploma - Management, BA PhD - Philosophy Non Executive & Independent Director
2019 2017 2017 2017 2021
30+ years experience in business & Member of ICAI (Institute of Serial entrepreneur and founding Retired as Chairman cum MD of He was Executive Director on selling strategy, HR & globalization Chartered Accountants of India) President of India Electronics & Semiconductor Complex Limited, the Board of the International strategy, change management and Semiconductor Association (IESA) (a Govt. of India enterprise) in 2005 Monetary Fund, Deputy Governor leadership Experience of over three decades of the Reserve Bank of India, in finance functions including M&A, Member of working group on Secretary, Economic Affairs, and Previously associated with capital expenditure and capital- development of R&D and IP in Chief Economic Adviser of the global conglomerates such as raising electronic formed by DeitY Indian Ministry of Finance, and Hewlett-Packard Taiwan LTD, Economic Adviser in the Ministry Microelectronic Corp. and MediaTek of Industry. Inc. Five decades of rich and Served as adjunct professor in considerable experience in National Taiwan University. economic research, economic Dixon Technologies (India) Limited Technologies Dixon policy, public finance central banking, monetary policy,infrastructure and urban affairs
26 Corporate Presentation THANK YOU
B 14 & 15, Noida Phase II, Pin – 201305, U.P. India Phone: +91-120-4737200 | E-Mail: [email protected]