Shares of Dixon Technologies surged 4% on July 16 after the company announced signing an agreement to acquire a 51% stake in Kunshan Q Tech Microelectronics (Q Tech India), marking a strong move in its efforts to strengthen capabilities in high tech component manufacturing.
The proposed deal, which will be executed through a combination of primary and secondary investments, aims to bolster Dixon’s presence in the production of camera and fingerprint recognition modules, components that are increasingly central to mobile handsets, IoT devices, and automotive applications.
Q Tech India, a subsidiary of Q Technology (Singapore) Pte and Kunshan Q Technology International, both part of the global Q Tech Group, will provide Dixon access to advanced technologies, precision manufacturing, and a skilled talent base. While financial details of the transaction are yet to be disclosed, the company stated that the strategic acquisition aligns with its plans to build a deeper, backward integrated electronics manufacturing ecosystem in India.
In an exchange filing, Dixon noted the move would further its capabilities in critical components, enabling it to cater to fast growing sectors such as consumer electronics, automotive tech, and smart systems.
Commenting on the development, Atul B Lall, Vice Chairman and Managing Director of Dixon Technologies, said, “Acquiring a majority stake in Q Tech India is a major step forward in Dixon's journey into the development and production of camera and fingerprint recognition modules across mobile handsets, IoT devices, and automotive applications. This strengthens the backward integration plans of the company and expands our footprint in the components ecosystem.”
Currently, Q Tech India provides services spanning IT support, cybersecurity, home automation, and web development, but the partnership is set to shift the focus toward high value component manufacturing at scale.
As India continues to position itself as a global electronics manufacturing hub, Dixon’s strategic bet on Q Tech India reflects the growing demand for domestic supply chain capabilities and value added components in the industry. Dixon Tech has been a key players in India’s emerging electronics manufacturing industry and this agreement is just another step towards expanding its capabilities.
