Dixon Tech Expands into Lighting with Signify in New Joint Venture

Dixon Technologies, a leading name in India’s electronics manufacturing services (EMS) sector, has entered into a 50:50 joint venture with Signify Innovations to form a new entity named Lightanium Technologies. This venture marks Dixon’s third major partnership in just a month, underlining its aggressive expansion strategy.

As part of the agreement, Dixon will transfer its lighting business and full ownership of its subsidiary, Dixon Technologies Solutions Pvt Ltd (DTSPL), into the joint venture. In return, Dixon will receive 2.5 crore equity shares of Rs 10 each, amounting to an 8.75% stake in the JV. Additionally, Dixon will transfer its lighting business on a slump sale basis and, instead of cash, will be issued 11.53 crore shares of the JV, giving it a 40.37% stake—subject to certain conditions.

Signify will also subscribe to 49.12% of the JV’s share capital for a cash consideration of Rs 140.30 crore. This amount will be used to acquire Signify’s LED lighting manufacturing operations in Vadodara, also through a slump sale.

Dixon’s stock has seen over 13% growth in the past month, driven by its recent joint ventures. Besides the deal with Signify, Dixon has also signed agreements to acquire a 51% stake in Q Tech India for high-precision camera and fingerprint modules and to form a JV with China’s Chongqing Yuhai Precision Manufacturing for supplying components for electronics, laptops, and mobile phones.

Brokerage firms remain bullish on Dixon’s growth. Nomura has maintained a “Buy” rating with a target of ₹21,409, citing the camera module entry as a significant value addition. CLSA, too, reiterated its “High Conviction Outperform” call with a ₹19,000 target, appreciating Dixon’s increased value addition in smartphone manufacturing.

Source: Moneycontrol