Rising giants Dixon, Tatas set to wrestle for India EMS crown


India’s electronics manufacturing services (EMS) space will likely witness a consolidation and price competition as analysts expect the industry to gravitate toward an eventual duopoly – of Dixon Technologies and Tata Electronics.With its strong financial resources, Tata is positioned to secure more favourable supplier deals, potentially reducing manufacturing costs, which could lead to intensified competition between the two players. The competition to expand is also expected to lead to consolidation in the sector, as smaller EMS players seek strategic alliances to stay competitive.

While Dixon has been in the business for over three decades, it became the largest EMS provider for mobile phone production in India in Q3 2024. But Tata Electronics with their legacy and ambitious plans have expanded rapidly in just five years. With the company looking to service beyond Apple, the other large smartphone players it is in talks with are likely to use the Tata Electronics alternative as leverage to get the best price from their existing suppliers.

“Tata Electronics looking to add clients like Xiaomi and Oppo will intensify competition in the market and a price war will follow,” Ekta Mittal, senior analyst – connected devices at CCS Insight told ET. “Beyond price, other factors too will play a crucial role like the level of quality assurance, after-sales support and ability to incorporate the demand side support from the vendors. Companies will need to leverage their operations to offer cost-effective solutions across the entire value chain.”

Prabhu Ram, VP – industry research group at CyberMedia Research (CMR) too echoed this sentiment. He said that the entry and diversification of Tata Electronics into the Indian EMS market, beyond Apple, marks a positive shift in competition within the ecosystem.


“Established and emerging players must sharpen their market positioning, boost operational efficiencies, and expand their product portfolios to stay competitive. This evolving landscape is also likely to drive consolidation among smaller EMS providers,” he said.

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As per Counterpoint Research, there are currently around 60 smaller EMS players and India’s production out of these facilities is roughly half of the total capacity. The firm’s senior analyst Shilpi Jain too felt consolidation is likely on the cards. However, CCS Insight’s Mittal believed the EMS market was still in its early stage and hence, consolidation was still some time away. She believed that smaller players were also important and would continue to grow as the sector grows.CMR’s Ram said that Dixon’s position as one of India’s leading EMS providers has been reinforced by its diversified, vertically integrated portfolio spanning consumer electronics, home appliances, and more.

Expansion Vehicles

“Its strong focus on smartphone manufacturing has earned the trust of global OEMs like Google, driving significant growth. Building on this success, Dixon is now strategically expanding into high-growth segments, including PC manufacturing, through partnerships with major brands like Asus and HP India,” he said.

As per Counterpoint Research, Dixon had a 11% share in the India smartphone EMS segment in Q3 2024 but with the recent JV with Vivo, this number could jump to a 20-22% market share or roughly double its smartphone production capacity, making it among the foremost players in the space.

“The government’s push for collaborations with Indian entities has greatly benefited Dixon, leading to partnerships with major brands like Xiaomi, Transsion, realme, and recently a joint venture with Vivo,” Counterpoint’s Jain said. “As a result, Dixon became the largest EMS provider in mobile phone production in India in Q3 2024.”

But Tata Electronics too has been following a similar model. ET had reported on January 14 that Tata Electronics is in talks with Xiaomi and Oppo to begin contract manufacturing for Chinese smartphone companies like Oppo and Xiaomi, in a bid to move beyond supplying only to Apple.

Further, earlier this month, Tata Sons Chairman N Chandrasekaran said that the group plans to open nine new factories within the next 24 months and will be investing $18 billion in electronics and semiconductors.

Not just this, last month, ET had also reported that Tata Electronics was in talks with companies like Microsoft, Dell, HP and several other large companies to onboard them as clients as a means to foray into the laptop and personal computer space, too.



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