Dixon Technologies (India) Limited, a leading electronics manufacturing services (EMS) company, has announced two significant strategic partnerships to enhance its manufacturing capabilities and expand its product portfolio.

Partnership with Chongqing Yuhai Precision Manufacturing

Dixon Technologies has entered into a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. Ltd. to form a joint venture in India. The proposed joint venture will focus on manufacturing and supplying precision components for laptops, mobile phones, IoT devices, automotive applications, and other mutually agreed products.

Key details of the joint venture:

• Dixon will hold 74.00% of the total paid-up share capital
• Chongqing Yuhai will hold the remaining 26.00%
• The partnership is subject to necessary statutory approvals and signing of definitive agreements

Mr. Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, commented on the collaboration: "This joint venture with Chongqing will focus on manufacturing precision mechanical & metal parts & components for a wide range of applications. It is a significant step in our effort towards localization of key components, deepening backward integration in Dixon's value chain & supporting the Make in India initiative of the Government."

Acquisition of Majority Stake in Q Tech India

In a separate development, Dixon has also signed a binding term sheet with Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India) and its shareholders for the proposed acquisition of a 51.00% stake in Q Tech India. This strategic move aims to strengthen Dixon's capabilities in camera and fingerprint modules for mobile handsets, IoT systems, and automotive applications.

The acquisition details include:

• Dixon to acquire 51.00% shareholding in Q Tech India
• The deal involves a combination of primary and secondary investment
• Subject to signing definitive agreements and regulatory approvals

Mr. Lall stated, "Acquiring majority stake in Qtech India is a major step forward in Dixon's journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications, thereby strengthening backward integration plans of the Company."

Impact on Dixon's Growth Strategy

These strategic partnerships align with Dixon's long-term vision to become a leading enabler in India's electronics manufacturing ecosystem. By combining the technological expertise of its new partners with Dixon's robust manufacturing infrastructure and customer access, the company aims to:

1. Enhance capabilities in critical component manufacturing
2. Deepen backward integration in its value chain
3. Support the Make in India initiative
4. Accelerate technology transfer and innovation
5. Strengthen India's electronics component ecosystem

As Dixon Technologies continues to expand its manufacturing capabilities and product portfolio, these partnerships are expected to create long-term value for customers and stakeholders while positioning the company for future growth in the rapidly evolving electronics manufacturing sector.

Dixon Technologies , a leading player in India's electronics manufacturing sector, has announced a strategic move to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India). This acquisition aims to enhance Dixon's production capabilities for camera and fingerprint modules used in mobile devices, IoT systems, and automotive applications.

Key Highlights of the Acquisition

• Dixon Technologies has entered into a binding term sheet with Q Tech India and its shareholders for the proposed acquisition.
• The deal involves both primary and secondary investments by Dixon to secure the 51% stake.
• The acquisition is subject to signing definitive agreements, regulatory approvals, and customary conditions precedent.
• The collaboration will focus on manufacturing, sale, and distribution of camera and fingerprint modules for mobile handsets, IoT systems, and automotive sector applications.

Strategic Implications

The acquisition is expected to significantly boost Dixon's position in the growing technology sectors of mobile devices, IoT, and automotive markets. By gaining access to Q Tech India's technological expertise and manufacturing capabilities, Dixon aims to strengthen its backward integration plans and expand its product portfolio.

Management Perspectives

Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, commented on the acquisition:

"Acquiring majority stake in Qtech India is a major step forward in Dixon's journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications. This collaboration is a testament to our commitment to technological excellence, self-reliance, deepening of component ecosystem and delivering greater value to our global and domestic partners."

Roy Ho, Chairman of Q Technology (Group) Company Limited, the parent company of Q Tech Group, expressed enthusiasm about the partnership:

"We are delighted to partner with Dixon Technologies, a company that shares our vision for innovation and excellence in the optical components for electronics manufacturing space. Our combined expertise will help us meet the growing demand for high-precision camera and fingerprint modules across mobile, IoT, and automotive sectors."

Expected Outcomes

The strategic alliance between Dixon Technologies and Q Tech India is anticipated to:

1. Accelerate technology transfer in camera and fingerprint module manufacturing
2. Enable faster go-to-market solutions
3. Strengthen India's electronics component ecosystem
4. Position the combined entity as a global leader in optical components for electronics manufacturing

This move aligns with Dixon's long-term vision to be a leading enabler in India's electronics manufacturing ecosystem, combining technological expertise with manufacturing scale and operational excellence.

As the deal progresses, industry observers will be keen to see how this acquisition impacts Dixon's market position and its ability to meet the growing demand for advanced camera and fingerprint modules in various technology sectors.