Dixon set to gain control over Q Technology's India division, purchasing a majority share in the Chinese company
Dixon Technologies (India) Ltd, a prominent player in India's electronics manufacturing sector, has announced its plans to acquire a controlling stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd. The deal, valued at Rs 1,085 crore, is set to expand Dixon's manufacturing and execution capabilities in mobile handsets, Internet of Things devices, and automotive applications.
The acquisition aligns with Dixon's long-term vision to be a leading enabler in India's electronics manufacturing ecosystem. The growth of Dixon Technologies (India) Ltd is supported by initiatives like 'Make in India', production-linked incentive schemes, and the increasing demand in the electronics sector. The 'China+1' strategy adopted by global corporations also boosts the growth of Dixon Technologies.
Kunshan Q Tech Microelectronics (India) Pvt Ltd, a subsidiary of Q Technology (Group) Company Limited, 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. In the financial year 2024-25, the company reported revenue of Rs 1,977 crore, and in the previous year, it generated Rs 2,435 crore.
In the acquisition, Dixon will pay Rs 553 crore in cash for a 51% stake, with Q Technology (Singapore) Pvt Ltd, part of China's Q Technology Group, retaining the remaining 49% stake. The deal is expected to strengthen Dixon's backward integration plans, providing the company with greater control over its supply chain and enhancing its competitive position in the market.
Dixon Technologies (India) Ltd reported a revenue of Rs 38,590 crore for the last fiscal year, with a net profit of Rs 1,232 crore. The acquisition is intended to expand Dixon's capabilities in the electronics sector, supporting the government's push for domestic manufacturing and contributing to the growth of India's electronics industry.
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