52-Week High Alert: Electronic Manufacturing & Services Provider Enter Into Binding Term Sheet with Vivo India for Proposed Joint Venture
The stock gave multibagger returns of over 200 per cent from its 52-week low.
Dixon Technologies and Vivo India have announced a strategic alliance to boost domestic manufacturing in India. The two companies have signed a binding term sheet to establish a joint venture that will focus on manufacturing electronic devices, including smartphones. This collaboration aims to leverage Dixon's manufacturing expertise and Vivo's strong brand presence to create a robust domestic supply chain.
The joint venture will be a 51:49 partnership, with Dixon holding a 51 per cent stake and Vivo India holding a 49 per cent stake. The new entity will be responsible for manufacturing a portion of Vivo's smartphone orders and other electronic products. By establishing this joint venture, both companies aim to reduce reliance on imports, generate employment opportunities, and contribute to India's economic growth.
The successful implementation of this joint venture is subject to the execution of definitive agreements, completion of customary conditions precedent, and obtaining necessary regulatory approvals. If all conditions are met, this partnership has the potential to significantly impact India's electronics manufacturing landscape. Both companies are optimistic about the future of this joint venture and its contribution to India's economic growth.
Earlier, Padget Electronics, a subsidiary of Dixon Technologies, is poised to commence mass production of Google Pixel smartphones at its Noida facility in collaboration with Compal. These devices will be manufactured for Google Information Services India Private Limited, marking a significant stride for both companies and India's manufacturing sector. This partnership underscores India's growing prominence as a global manufacturing hub, fostering economic growth, job creation, and technological advancement within the country.
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About Dixon Technologies (India) Limited
Dixon Technologies (India) Limited is the largest homegrown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes (i) Consumer electronics like LED TVs; (ii) Home appliances like washing machines; (iii) Lighting products like LED bulbs and tube lights, downlighters; (iv) Mobile phones; and (v) Wearables (vi) Refrigerators. Dixon also provides solutions in reverse logistics i.e. repair and refurbishment services of LED TV panels.
The stock hit a 52-week high on December 16, 2024, and the company's market cap crossed Rs 1 lakh crore. The stock gave multibagger returns of over 200 per cent from its 52-week low. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.