Dixon Tech hits 52-week high on subsidiary’s manufacturing deal with Xiaomi

Shares of Dixon Technologies India Limited jumped nearly 2 percent to a 52-week high of Rs 5,378 in early trade on September 28 after a subsidiary entered a deal with Xiaomi to manufacture smartphones for the company.

“We wish to inform that Padget Electronics Private Limited, a wholly owned subsidiary, has entered into an agreement with Xiaomi Technology India Private Limited,” Dixon said in an exchange filing on September 27.

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As per the agreement, the phones will be manufactured at Padget’s manufacturing unit in Noida, Uttar Pradesh.

According to a Bloomberg report, Beijing-based Xiaomi has been compelled to partner with Dixon for smartphone assembly because India is pressing Chinese companies to localise everything from manufacturing to distribution of devices.

Dixon Technologies (India) is one of the largest homegrown design-focused and solutions companies engaged in manufacturing products in the consumer durables, lighting and mobile phone markets in India.

India, as the world’s second-largest smartphone market, is a fiercely competitive arena for the world’s leading phone brands. Companies like Apple are actively vying to increase their sales in this highly populous nation.

Once a prominent player in the Indian market, Xiaomi has lost steam after facing heightened regulatory scrutiny and overexpanding its product portfolio.

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