Dixon Technologies Makes Waves: Subsidiary’s MoU with Cellecor Gadgets Sparks Investor Interest!

Dixon Technologies stock price: Shares of Dixon Technologies (India) were on the watchlist of investors on Friday, December 27, as the company’s wholly owned subsidiary, Dixon Electro Manufacturing, has entered into an MOU with Cellecor to produce refrigerators and their associated components for Cellecor.

The stock experienced a rise during morning trading sessions. However, in the afternoon transactions, shares were priced 1.4% lower at ₹17,785 each on the NSE.

“Cellecor is a prominent brand in the consumer electronics sector, recognized for its innovative and state-of-the-art technology. With a dedication to making happiness affordable, Cellecor provides a varied selection of products, including mobile phones, smart TVs, soundbars, smartwatches, kitchen appliances, and home appliances like washing machines, air conditioners, refrigerators, air coolers, geysers, heaters, & an array of other products,” the company conveyed in its press release.

Commenting on this event, Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies, expressed, “We are thrilled to share that Dixon Electro Manufacturing has entered into an MOU with Cellecor for the production of refrigerators and their related components.”

The chairman further stated, “Through this collaboration, Dixon Electro Manufacturing will broaden its customer base in the refrigerator market. Moreover, this partnership signifies a strategic milestone and reinforces our commitment to the ‘Make in India’ initiative while addressing the changing requirements of Indian consumers.”

Dixon will maintain a majority share of 51% in the joint venture, while the remainder will belong to Vivo India.

“Dixon Technologies (India) Limited (Dixon) and Vivo Mobile India Private Limited (Vivo India) have entered into a binding term sheet for a proposed joint venture to engage in the OEM business of electronic devices, including smartphones,” the filing stated.

However, neither Dixon nor Vivo India will possess any shares in each other.

Dixon Technologies Q2 FY25 Financial Results

For the quarter concluding on September 30, 2024 (Q2 FY25), Dixon Technologies (India), a leading entity in the electronic manufacturing services (EMS) sector, reported an increase of more than three times in its consolidated net profit to ₹411.7 crore, buoyed by robust performance from its Mobile and EMS Division.

Its operational revenue doubled to ₹11,534.08 crore in the September quarter, up from ₹4,943.18 crore in the same period the previous year.

However, revenue from its Consumer Electronics & Appliances (LED TV & Refrigerator) segment decreased by 2% to ₹1,413 crore. The contribution from this segment also fell to 12% in Q2 FY25 from 29% a year prior.

The shares of Dixon Technologies (India) have surged by 180% over the past year.