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Shares of Dixon Technologies (India), which is also a beneficiary under the government’s PLI scheme, has jumped by a whopping over 25 per cent in the past one month.
The facility will undertake part of Vivo’s original equipment manufacturing (OEM) orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands. (Getty)
Electronics contract manufacturer Dixon Technologies has said it will set up a joint venture with Chinese mobile phone company Vivo for manufacturing of electronic devices, including smartphones, according to a regulatory filing. Following the news, Dixon’s shares surged 4.8 per cent to Rs 18,819 apiece on the BSE during the early trade.
As of 11:58 am, the shares were trading at around 4 per cent.
The shares of Dixon Technologies (India), which is also a beneficiary under the government’s PLI scheme, has jumped by a whopping over 25 per cent in the past one month.
According to the BSE filing, Dixon will hold majority stake of 51 per cent in the joint venture and the rest will be held by Vivo India.
“Dixon Technologies (India) Limited (Dixon) and Vivo Mobile India Private Limited (Vivo India) sign a binding term sheet for a proposed joint venture to undertake OEM business of electronic devices including smartphones,” the filing said.
However, neither Dixon, nor Vivo India will have any stake in each other.
The facility will undertake part of Vivo’s original equipment manufacturing (OEM) orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands.
“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 Vivo’s leadership in the Indian business ecosystem. This partnership further strengthens our strong foothold in the android smartphone ecosystem in India,” Dixon Vice Chairman and Managing Director Atul B Lall said.
The filing did not share financial details and timeline for commencement of the operation.
“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,” Vivo India CEO Jerome Chen said.
