Electronics manufacturing services company, Dixon Technologies India Limited, on Tuesday (July 15) said it has entered into a binding Term Sheet with Chongqing Yuhai Precision Manufacturing Co. Limited to establish a prospective joint venture in India.As per the agreement, Dixon will hold 74% of the total paid-up share capital of the joint venture company, while Chongqing will own the remaining 26%. The joint venture aims to engage in the manufacturing and supply of precision components for laptops, mobile phones, IoT devices, automotive products, and any other categories mutually agreed upon by the two parties.
The formation of the joint venture is subject to the receipt of necessary statutory approvals and the signing of definitive agreements. The structure of the joint venture will be optimally defined by both companies as part of the implementation process.
Also Read: Dixon Tech shares rise 4% after Nomura gives it the highest target on the Street
Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, said, “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.”In a different development, Dixon Technologies announced that it has entered into a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India). The proposed acquisition will be executed through a combination of primary and secondary investments.
The formation of the joint venture is subject to the receipt of necessary statutory approvals and the signing of definitive agreements. The structure of the joint venture will be optimally defined by both companies as part of the implementation process.
Also Read: Dixon Tech shares rise 4% after Nomura gives it the highest target on the Street
Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, said, “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.”In a different development, Dixon Technologies announced that it has entered into a binding term sheet to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India). The proposed acquisition will be executed through a combination of primary and secondary investments.
The transaction, aimed at enhancing collaboration in the manufacturing, sale, and distribution of camera and fingerprint modules, will support applications across mobile handsets, IoT systems, and the automotive sector.
Q Tech India is a subsidiary of Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited — both part of the Q Tech Group.
Also Read: Dixon Technologies shares fall after getting their second-lowest price target on increased competition
Shares of Dixon Technologies (India) Ltd ended at ₹15,818.20, down by ₹80.80, or 0.51%, on the BSE
