EMS stock jumps 4% after JV with Vivo to manufacture smartphones in India 

A leading semiconductor company has partnered with Vivo to form a joint venture aimed at manufacturing smartphones in India. This collaboration is expected to strengthen local production capabilities and enhance Vivo’s presence in the Indian market. 

Price Variation 

During Monday’s trading session, the share price of Dixon Technologies (India) Ltd reached an intra-day high of Rs.18,830.00 per share, rising 4.8 percent from its previous close of Rs.17,954.40 apiece. Over the past five years, the stock has delivered returns exceeding 2,400 percent. 

What Happened 

Dixon Technologies, an electronics contract manufacturer, has entered into a joint venture with Chinese smartphone maker Vivo to produce smartphones for both Vivo and other brands. 

Dixon will hold a 51 percent majority stake in the joint venture, while Vivo India will own the remaining 49 percent. According to the agreement, neither Dixon nor Vivo India will hold stakes in each other. 

The deal, still subject to the final terms, regulatory approval, and an optimal structure, comes as the Indian government has encouraged Chinese companies to collaborate with Indian entities. 

The government has also urged Chinese smartphone brands to bring in Indian equity partners and appoint Indian executives in key roles, following concerns over compliance issues such as tax evasion and foreign exchange violations. 

Management Commentary 

Mr. Atul B. Lall, Vice Chairman and Managing Director of Dixon, added, “It gives us immense pleasure to partner with Vivo India, which is an iconic global brand, and we see them as an ideal strategic partner that shares our core values of quality, engineering prowess, and customer satisfaction. We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivo’s leadership in the Indian business ecosystem. We are excited to work together to create a stronger, more diversified, and future-proof organization.” 

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Management Guidance 

The company aims to achieve revenue of Rs.3,500 crore for FY25 and plans to reach Rs.48,000 crore in the IT hardware segment over the next six years. It is currently negotiating server contracts with two major global OEMs.

Financials 

According to its recent financial updates, Dixon Technologies (India) Ltd reported remarkable consolidated revenue of Rs.11,534 crores in Q2 FY25, marking a 133 percent increase from Rs.4,943 crores in Q2 FY24. In addition, the company saw an exceptional surge in net profit, rising by 264 percent to Rs.412 crores, compared to Rs.113 crores in the same period last year. 

About the Company 

Dixon Technologies is a leading EMS company in India, offering design-focused solutions across diverse product categories, including consumer electronics, home appliances, lighting, mobile phones, IT hardware, and security devices. 

Written by – Siddesh S Raskar 

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