Dixon Technologies’ manufacturing agreement with Motorola is a big win, said Atul Lall, Managing Director of the company on Tuesday. Lall also said that Dixon Technologies’ is targeting a revenue of Rs 3,000 crore from the deal, while adding that the cost structure and margin numbers are being worked out with Motorola.
“The details, the numbers are still being worked out. I think it is slightly premature for me to share the margin numbers, but undoubtedly it is a big win for us,” he said in an interview with CNBC-TV18.
On the rising commodity prices, Lall expects a near term impact on original design manufacturer (ODM) side.
“We have two kind of business models. One is prescriptive business model in which it is a pass through. The other is ODM where we offer our design solutions. So, undoubtedly the increasing commodity prices, increasing freight prices is having a negative impact and there is a lag in passing them on. So, in the short term there will be negative impact for some time,” he said.
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