Dixon Technologies (India) rallied 4.22% to Rs 18,714.95 after the company signed a binding term sheet for setting up a new manufacturing joint venture with vivo Mobile India.
In the proposed JV, Dixon Tech will hold a 51% stake, while Vivo India will hold the remaining 49%. It will focus on original equipment manufacturing (OEM) of electronic devices, including smartphones.The parties will agree on an optimum structure and the relevant terms and conditions to be set out in the definitive agreements. The transaction will be subject to execution of such definitive agreements, completion of customary conditions precedent, and receipt of applicable regulatory approvals, including as required under the foreign exchange control laws of India, the firm stated in an exchange filing.
Atul B. Lall, vice chairman and managing director of Dixon, said, It gives us immense pleasure to partner with Vivo India, which is an iconic global brand, and we see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction. We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivos leadership in the Indian business ecosystem.
Jerome Chen, CEO of Vivo India, said, We are delighted to sign a term sheet with Dixon, which boasts rich localized 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.
Dixon Technologies (India) transformed from being a manufacturer of electronic goods to leading multi-product corporation with widespread activities. The company is primarily engaged in the manufacturing of electronics as its core business activity.
The companys consolidated net profit surged 263.3% to Rs 536.49 crore on a 133.3% jump in net sales to Rs 11,534.08 crore in Q2 FY25 over Q2 FY24.
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The counter hit a new life high of Rs 18,739.95 intraday today.
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