Dixon Tech shares surge 5% as co looks to manufacture, export Xiaomi mobile phones

Shares of Dixon Technologies climbed 5 per cent in Wednesday's trade after the company proposed to partner Xiaomi India, manufacturing and exporting of Xiaomi mobile phones. Dixon said the two companies will also explore enhancing component ecosystem in India through a wholly owned subsidiaries of Dixon. The proposed association will be formalised subject to execution of the definitive agreements, Dixon informed stock exchanges.

Dixon is a home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Following the development, the stock rose 5.04 per cent to hit a high of Rs 3,867.90 on BSE.

Vice Chairman & Managing Director Atul B Lall said Indian EMS industry has embarked on an upward journey, with most of the global mobile phone manufacturers and their supply chain partners investing in manufacturing.

The Indian EMS industry is well-positioned to unlock its true potential in the coming years, he said.

"Xiaomi, which has built a strong brand equity over the years in India is known for its high quality and efficiency is reckoned as a strong force in smart mobile phones market in India and people across the nations have strong faith in their products. We are ecstatic and encouraged by the trust they have reposed on Dixon for the proposed association," he Lall said.

Lall said the partnership will leverage Dixon’s manufacturing , execution track record and Xiaomi’s expertise in Indian business ecosystem and it represents a major milestone in Indian Governments “Make in India” initiative.

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