Electronic manufacturing & services provider and Chongqing Yuhai Precision Manufacturing Co. Ltd, signs a binding term sheet for prospective joint venture!

Dixon Technologies (India) Limited and Chongqing Yuhai Precision Manufacturing Company Ltd have signed a binding Term Sheet to establish a joint venture in India. This collaboration aims to manufacture and supply precision components for various products, including laptops, mobile phones, IoT devices and automotive applications. The proposed joint venture will be structured with Dixon holding a 74 per cent stake in the total paid-up share capital, while Chongqing will hold the remaining 26 per cent. This agreement, signed on July 15, 2025, is subject to obtaining all necessary statutory approvals and the finalisation of definitive agreements.

Additionally, Dixon Technologies (India) Limited has entered into a binding term sheet with the Q Tech Group, encompassing Kunshan Q Tech Microelectronics (India) Private Limited ("Q Tech India"), Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited, for the proposed acquisition of an aggregate 51 per cent shareholding in Q Tech India. This strategic move aims to foster collaboration in the manufacturing, sale and distribution of camera and fingerprint modules for mobile handsets, IoT systems and automotive applications. The acquisition, to be finalised through a combination of primary and secondary investment by Dixon, is contingent upon the signing of definitive agreements, receipt of any necessary regulatory approvals and completion of customary conditions precedent.

About Dixon Technologies (India) Limited

Dixon Technologies (India) Limited is the largest homegrown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes (i) Consumer electronics like LED TVs; (ii) Home appliances like washing machines; (iii) Lighting products like LED bulbs and tube lights, downlighters; (iv) Mobile phones; and (v) Wearables (vi) Refrigerators. Dixon also provides solutions in reverse logistics i.e. repair and refurbishment services of LED TV panels.

The company has a market cap of over Rs 97,000 crore with good profit growth of 45 per cent CAGR over the last 5 years and median sales growth is 45.1 per cent over the last 10 years. The stock is up by 55 per cent from its 52-week low of Rs 10,613 per share.  

Disclaimer: The article is for informational purposes only and not investment advice.