New Delhi: Homegrown electronics manufacturing company Dixon Technologies has announced its intent to acquire a 51% stake in Q Tech India for manufacturing, sales and distribution of camera and fingerprint modules.
“The proposed acquisition of a majority stake in Q Tech India aligns with our long-term vision to be a leading enabler in India’s electronics manufacturing ecosystem by combining Q Tech’s technological expertise with Dixon’s manufacturing scale and operational excellence. This collaboration is a testament to our commitment to technological excellence, self-reliance, deepening of component ecosystem and delivering greater value to our global and domestic partners. We are confident that this strategic alliance will unlock significant synergies, accelerate technology transfer, and enable faster go-to-market solutions. It represents not just a business opportunity, but a shared vision for innovation, quality, and long-term growth” Mr. Atul B. Lall, Vice Chairman & MD of Dixon Technologies (India) Limited, said.
The acquisition will be executed through a mix of primary and secondary investments, though Dixon hasn’t disclosed further details.
74:26 proposed Joint Venture with Chongqing Yuhai Precision Manufacturing Co
In a separate announcement, the company also announced its intent to form a JV with Chinese precision component manufacturer Chongqing Yuhai with the company holding the majority 74% stake. The binding agreement is subject to regulatory approvals.
“This Joint venture with Chongqing will focus on manufacturing precision mechanical & metal parts & components for a wide range of applications including laptops, mobiles, IOT, automotive which is a significant step in our effort towards localisation of key components, deepening backward integration in Dixon value chain & supporting the Make in India initiative of the Government. We look forward to combining Chongqing’s deep technical expertise with Dixon’s robust manufacturing infrastructure & customer access.” Mr Atul Lall added.
Dixon Technologies has been one of the biggest beneficiaries of the government’s Make In India initiative, where its flagship Production-Linked Incentive (PLI) scheme has helped India become the world’s second-largest smartphone exporter.
Since the company listed on the bourses in 2017, its shares have zoomed 30 times in value, offering investors a chance to invest in India’s manufacturing boom.
Analysts like Nomura, Anand Rathi and Sharekhan have maintained a ‘buy’ rating on Dixon, primarily due to its strong financials and its efforts to expand its operations through these developments. Dixon’s shares have risen 3% in early morning trades on July 16 after the announcement.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
