 "Dixon, Vivo form JV to make smartphones in India; shares scale record high")
Dixon Technologies hits record high: Shares of electronics manufacturer Dixon Technologies rose as much as 2.68 per cent to hit a record high (all-time high) of Rs 18,439.60 per share on Monday, December 16, 2024.
Dixon Technologies' share price surged following the announcement of a binding term sheet with Vivo India on December 15, 2024, to establish a joint venture in India. The venture will focus on original equipment manufacturing (OEM) of electronic devices, including smartphones.
Under the agreement, Dixon will hold a 51 per cent stake in the joint venture entity, while vivo India will hold the remaining 49 per cent. The statement clarified that neither company will hold any stake in the other.
“We are delighted to sign a term sheet with Dixon which boasts rich localised management experience and outstanding professional manufacturing prowess. The proposed joint venture will undertake part of vivo's OEM orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands. This partnership will effectively complement the current manufacturing operations of vivo India,” said Jerome Chen, CEO of vivo India.
Furthermore, the parties plan to finalise an optimal structure and the detailed terms and conditions in definitive agreements. The transaction's completion will depend on executing these agreements, fulfilling customary conditions precedent, and obtaining necessary regulatory approvals, including those required under India's foreign exchange control laws.
Atul B Lall, vice chairman and managing director of Dixon Technologies said, “We believe that this association will bolster our manufacturing excellence and superior execution abilities and vivo’s leadership in the Indian business ecosystem. We are excited to work together to create a stronger, more diversified, and future-proof organisation. This partnership further strengthens our strong foothold in the android smartphone ecosystem in India. There is immense potential to further build on shared capabilities together in times to come, to deliver sustainable growth for the proposed venture.”
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About Dixon Technologies
Dixon Technologies is a prominent homegrown company specialising in design-focused manufacturing solutions across consumer durables, lighting, and mobile phone markets in India.
The company’s extensive product portfolio includes LED TVs, washing machines, LED bulbs, tubelights, downlighters, mobile phones, wearables, hearables, refrigerators, and telecom and IT hardware products.
In addition to manufacturing, Dixon provides reverse logistics solutions, including repair and refurbishment services for LED TV panels.
The market capitalisation of Dixon Technologies is 1,10,609.15 crore, according to BSE. The company falls under the BSE 200 category.
The 52-week low of Dixon Technologies share is Rs 5,785 per share.
At 9:30 AM, Dixon Technologies shares were trading 2.57 per cent higher at Rs 18,419.50 per share. By comparison, BSE Sensex was trading 0.19 per cent lower at 81,978.85 levels.