Transaction:
- Dixon Technologies (India) Ltd acquired a 51% controlling stake in Kunshan Q Tech Microelectronics (India) Pvt. Ltd. for a total consideration of Rs. 552.99 crore.
- The deal will be executed in two stages:
Stage 1: Purchase of 1.61 crore shares from Q Tech Singapore and Q Tech International for Rs. 428 crore.
Stage 2: Subscription to 47.17 lakh new shares for Rs. 125 crore.
- The transaction is fully funded through cash; post-acquisition, Dixon will hold 51% and Q Tech Singapore 49%, forming a joint venture structure.
About Kunshan Q Tech Microelectronics :
- Incorporated in 2019, the company is a subsidiary of a Chinese optical and imaging components manufacturer, producing camera and fingerprint modules for mobile, IoT, and automotive applications.
- It operates a manufacturing facility in New Delhi, catering to leading Android smartphone players, with a capacity of 5 million camera modules per month.
About Dixon Technologies Limited:
- Incorporated in 1993 and headquartered in Noida, Dixon Technologies provides electronic manufacturing services across home appliances, lighting, and mobile phones.
- The company is also diversifying into EVs, defence, drones, medical electronics, and telecom infrastructure.
Rationale:
- The acquisition enhances Dixon’s manufacturing capabilities in mobile handsets, IoT devices, and automotive electronics, improving execution efficiency and product diversification.
- It strengthens backward integration and supply chain control, aligning with Dixon’s strategy to deepen its electronics manufacturing value chain in India.
- The deal is expected to accelerate technology transfer, unlock synergies, and enable faster go-to-market execution in high-demand verticals.
- It aligns with Dixon’s long-term strategy to expand its high-value component manufacturing base and deepen participation in the global electronics value chain.
- The acquisition provides access to advanced optical and imaging technologies, enabling Dixon to offer integrated solutions to global OEMs.
- Kunshan Q Tech reported revenues of Rs. 1,977 crore in FY25, compared with Rs. 2,435 crore in FY24 and Rs. 1,899 crore in FY23, with a negative net worth of Rs. 274 crore as of March 31, 2025.
- Earlier in July, Dixon entered into a 74:26 joint venture with Longcheer Intelligence Pte. Ltd. to manufacture smartphones and smart devices in India, further expanding its presence in smart electronics and strengthening relationships with global OEM partners.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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