According to AR 2017-18, the mobile phone segment of the company contributes 23.5 percent to company’s total revenue. Their key customers in mobile segment included Gionee, Intex. Both these customers are struggling in market, and as a result the revenue from mobile phone segment dropped from Rs. 298.56 Crore in June 2017 to Rs. 73.21 Crore in June 2018. The company is entering into production of mother boards and PCBs for mobile phones by end of this month to increase margins, but they need to get more customers for mobile phone segment to perform. They have added a feature phone company called ‘Tambo’ as customers in last quarter. I searched for tambo phones on Flipkart and Amazon, while the products are available on Amazon, but there are no reviews or ratings available to know how successful the products are.
They have also started production for flipkart’s in-house brand named MarQ. These are ODM products, which are higher in margin from OEM products. The reviews were good.
In security services, they are manufacturing camera and DVRs. They supply to CP plus, which has about 40% market share in cctv cameras. This sector is witnessing very good growth, but is relatively small segment for company.
In Lighting Dixon has almost all major companies in clients. Jaguar, Syska, Orient, usha, Crompton, Wipro, Phillips, Panasonic, Surya are among major clients. This sector is also growing well.
The main issue with the company is Mobile phone division, which until it gets new big clients or the business of Gionee and Intex revives, will remain in pressure.