Dixon Technologies shares saw a significant surge on Wednesday following the announcement of a collaboration with Xiaomi India to manufacture and export smartphones from India.
What Happened? The announcement coincides with Xiaomi’s revealed plans to begin producing wireless audio products domestically in collaboration with electronics manufacturer Optiemus earlier in the week.
Dixon, an established Indian electronics manufacturer, plans to extend Xiaomi’s smartphone value chain through its subsidiaries. This strategic move will enhance the manufacturing depth of Xiaomi smartphones.
By August or September, Dixon aims to initiate the production of Xiaomi smartphones at a new 320,000-square-foot facility currently under construction in Noida.
Atul B. Lall, vice chairman and managing director of Dixon Technologies, stated that this partnership capitalizes on Dixon’s manufacturing prowess and Xiaomi’s business leadership in India. This collaboration marks a significant milestone in the Indian government’s “Make in India” initiative.
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This partnership follows a directive from the Indian government urging Chinese smartphone makers to collaborate with Indian manufacturers to strengthen the domestic supply chain. This move aims to maximize the benefits of the government’s production-linked incentive scheme.
Price Action: Dixon Technologies (India) Limited share price was up 3% at ₹3,792.80 on Wednesday afternoon.
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