Dixon Technologies, a leading player in the IT hardware manufacturing sector, has announced a strategic partnership with HP India under the government’s IT Hardware Production Linked Incentive (PLI) Scheme 2.0. This development marks Dixon’s third significant entry into the IT hardware market, following previous agreements with Lenovo and Acer.
The collaboration, which is set to be formalized through a definitive agreement soon, will see Dixon manufacture notebooks, desktops, and all-in-one PCs for HP India. This partnership underscores Dixon’s growing prominence in the IT hardware sector and aligns with its ambitious revenue targets.
Morgan Stanley’s latest brokerage note has set an “Equal Weight” (EW) rating on Dixon Technologies with a target price of ₹8,696 per share. The note highlights the substantial potential of Dixon’s new deal with HP, which is expected to contribute significantly to the company’s revenue growth.
Dixon Technologies aims to achieve IT hardware revenues in the range of ₹30-35 billion for the fiscal year 2025 (F26). Furthermore, the company is setting its sights on a cumulative revenue target of ₹480 billion over the next six years. This ambitious projection reflects Dixon’s strategic focus on scaling its operations and capitalizing on the expanding IT hardware market in India.
HP India, a dominant player in the Indian desktop and notebook market with a market share of 28-30%, joins Lenovo and Acer, who each hold approximately 15% of the market. The addition of HP India to Dixon’s client roster not only enhances the company’s market position but also strengthens its footprint in the competitive IT hardware landscape.
Dixon’s partnership with HP is poised to accelerate its growth trajectory and cement its status as a key player in India’s IT hardware sector. As the company moves forward with this new deal, all eyes will be on how it leverages this opportunity to drive its ambitious revenue goals and expand its market presence.
