With plans to expand manufacturing capacity and improve efficiency, Dixon Technologies’ subsidiary, IsmartU India, will acquire assets from KHY Electronic India for ₹1.33 billion.
On Saturday, Indian contract manufacturer Dixon Technologies Limited announced that its subsidiary, IsmartU India Private Limited (IIPL), has entered into a binding memorandum of understanding (MOU) with KHY Electronic India Private.
As per the agreement, IIPL will acquire land, buildings, machinery, and other tangible assets from KHY for a total consideration of up to ₹1.33 billion, excluding taxes. This acquisition aims to expand IIPL’s manufacturing capacity and improve its operational efficiency.
The announcement comes as the company’s board of directors is set to meet this week to review and approve the unaudited financial results for the quarter and nine months ending 31st December 2024.
Founded in 1993, Dixon Technologies is one of the leading electronic manufacturing services (EMS) providers in India. The company operates across various sectors, including consumer electronics, lighting, home appliances, CCTV cameras, and mobile phones. It also manufactures security surveillance equipment, wearables, and air conditioner PCBs.
Recently, Dixon entered into a joint venture with Imagine Marketing Private Limited to design and manufacture wireless audio solutions in India.
According to a report by moneycontrol, following this deal, Dixon’s shares saw a 0.74% rise on the Bombay Stock Exchange (BSE) on Monday morning.
KHY Electronic India is a newly established company specialising in consumer electronics manufacturing like mobile phones, tablets, and setup boxes.
