Dixon Technologies, India’s largest electronics manufacturer, is planning to join forces with China’s HKC to make display modules for smartphones, laptops, and tablets. Dixon will hold a 74% stake in this new joint venture, while HKC will own the remaining 26%. The initial investment for this project is ₹250 crore.
Dixon has already applied to the government for the necessary security and investment approvals. Once approved, they plan to set up the manufacturing unit in India within the next 8 to 10 months.
In the first phase of the project, the JV will invest ₹250 crore, with more investments planned as production capacity expands. This partnership marks Dixon’s second recent collaboration with a Chinese company, following its acquisition of a majority stake in China’s Transsion Holdings.
The Indian government has recently started approving Chinese investments under certain conditions, like the Chinese partner holding a minority stake and the exclusion of Chinese nationals from key executive roles in Indian operations. This move comes as the electronics industry in India seeks to relax the foreign investment rules with China to boost local manufacturing.
Dixon Technologies, known for making a wide range of electronics including phones, TVs, and washing machines, currently has the capacity to produce 45 million smartphones per year. With the upcoming addition of 10-12 million devices following the Transsion Holdings deal, Dixon aims to meet 55-60% of the Indian market’s demand. The company manufactures smartphones for brands like Motorola, Samsung, and Xiaomi, as well as laptops for Lenovo and Acer.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
