BackDixon shares hit 52-week high; tech arm ties up with Xiaomi to manufacture smartphones
Dixon has entered into an agreement with Xiaomi for manufacturing phones and other devices
PremiumElectronic Manufacturing Services firm, Dixon, inked pact with Xiaomi to begin the manufacturing of smart phones and other related products for the Chinese firm, said the company in its stock filing on Wednesday.
On Wednesday, shares of Dixon rallied around four per cent to hit a 52-week high of ₹5,298.95 on the BSE, outperforming the 30-share BSE Sensex during the session. Dixon settled 3.69 per cent higher at ₹5,284.20 apiece on the BSE. The value of company shares has increased by 8.09 per cent YTD and by 15.78 per cent in last one year.
Also Read: Dixon Tech Q4 Results: Net profit rises 27% to ₹80 crore, dividend declared
As per the agreement, Dixon's wholly owned subsidiary, Padget Electronics Private Limited will manufacture smart phones and other related products for Xiaom at its Noida-based manufacturing facility. Notably, Padget has also received approval under Production Linked Incentive Scheme introduced by the Government of India.
Earlier, Mint had reported that Dixon is in the process of inaugurating the setting up of a 1 million square-food assembly facility for Xiaomi. Other than this, Dixon will inaugurate the setting up of its another plant in one of the southern Indian states—and could cater to demand from other brands and product categories, reported Mint's Shouvik Das.
“It gives us an immense pleasure to partner with Xiaomi which is an iconic brand. We are delighted and encouraged by the trust they have reposed on Dixon for the association and believe that this association will leverage our excellence, superior execution track record and Xiaomi’s expertise & leadership in Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India" initiative," said Mr. Atul B. Lall, Vice Chairman & Managing Director, Dixon.
Dixon Technologies
The company is a renowned name in the field of manufacturing of products in the consumer durables, lightning and mobile phone markets in India. The company also produces consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tubelights, downlighters; mobile phones; and CCTV & DVRs. The company is also actie in manufacturing of medical equipment and wearables. Other than manufacturing, the company provides solutions in reverse logistics, ie repair and refurbishment services of LED TV panels.
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