Strategic Move to Strengthen Electronics Manufacturing Capabilities
Dixon Technologies Limited has acquired a 51% majority stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd (Q Tech India) for approximately ₹552.99 crore, combining share purchases from existing shareholders and new share subscriptions. The acquisition was formalized on September 26, 2025, through a Share Subscription and Purchase Agreement (SSPA), subject to regulatory approvals.
Acquisition Details
- Target Company: Kunshan Q Tech Microelectronics (India) Pvt Ltd
- Total Value: ₹552.99 crore
- Share Purchase: ₹428 crore from existing shareholders, Q Technology (Singapore) Pvt Ltd and Kunshan Q Technology International Ltd
- New Shares Subscribed: ₹125 crore
- Stake Acquired: 51% (majority ownership)
The acquisition positions Dixon to enhance manufacturing capabilities for high-precision components, including camera and fingerprint modules used in mobile devices, IoT products, and automotive applications.
Strategic Significance
This acquisition supports Dixon Technologies’ backward integration strategy and strengthens its presence in high-growth technology sectors. Key benefits include:
- Expanded product portfolio and technical expertise in critical components
- Increased value addition, projected to rise from ~18% currently to 35–37% in the medium term
- Greater control over the supply chain and vertical integration within the electronics manufacturing ecosystem
The deal underscores Dixon’s commitment to building a robust domestic manufacturing base and leveraging synergies in the mobile, IoT, and automotive sectors.
Summary
- Acquisition: 51% stake in Q Tech India for ₹552.99 crore
- Structure: ₹428 crore via share purchase; ₹125 crore via new shares subscription
- Objective: Enhance manufacturing of critical components for mobile, IoT, and automotive devices
- Strategic Goal: Strengthen backward integration, increase value addition, and expand portfolio in high-growth sectors
Disclaimer:
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