New Delhi, Sept. 18 -- Noida, Uttar Pradesh-based Dixon Technologies (India) Ltd, which provides electronic manufacturing services for products such as consumer durables, home appliances, lighting, and mobile phones, plans to buy a controlling stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd.
Dixon will pay Rs 553 crore ($62.7 million) in cash for a 51% stake in Kunshan Q Tech, it said in a stock-exchange filing. The deal values the target company at Rs 1,085 crore. Q Technology (Singapore) Pvt Ltd, part of China's Q Technology Group, will retain the remaining 49% stake.
Kunshan Q Tech Q Technology is engaged in the design, research and development, manufacturing, and sale of camera and fingerprint recognition modules for mobile handsets, Internet of Things systems and automotive applications.
Dixon said the deal will help it to expand its manufacturing and execution capabilities in mobile handsets, IoT devices and automotive applications, and strengthen its backward integration plans. It also fits in with Dixon's long-term vision to be a leading enabler in India's electronics manufacturing ecosystem, it added.
Dixon, led by chief executive and managing director Atul Lall, more than doubled its revenue in the last fiscal year to Rs 38,590 crore. Its net profit during FY25 tripled to Rs 1,232 crore. Kunshan Q Tech reported revenue of Rs 1,977 crore in FY25, about 19% lower than Rs 2,435 crore in FY24.
Dixon's growth is supported by increasing demand in the electronics sector, the government's push for domestic manufacturing through initiatives like 'Make in India' and production-linked incentive schemes, and the 'China+1' strategy adopted by global corporations.
Published by HT Digital Content Services with permission from VC Circle.