Dixon Strengthens Backward Integration with Majority Stake in Q Tech India
- Dixon Technologies to acquire 51% stake in Q Tech India to expand into camera and fingerprint module manufacturing.
- The deal strengthens Dixon’s backward integration with access to advanced technology and precision manufacturing.
- Focus on high-growth segments like mobile handsets, IoT devices, and automotive applications.
In a strategic move aimed at enhancing its capabilities in advanced electronics, Dixon Technologies (India) announced on July 15 that it has signed a binding term sheet to acquire a 51 percent stake in Kunshan Q Tech Microelectronics (India). The acquisition, to be executed via primary and secondary investments, marks Dixon’s significant foray into the development and production of camera and fingerprint modules for mobile handsets, IoT systems, and automotive applications.
While financial details of the deal remain undisclosed, the company highlighted that the transaction would grant Dixon access to cutting-edge technology, precision manufacturing expertise, and specialized talent. The deal is currently subject to the signing of definitive agreements, regulatory approvals, and other customary conditions.
Q Tech India is known for its services in IT support, cybersecurity, home automation, and web development. The acquisition is expected to strengthen Dixon’s backward integration strategy by adding critical high-tech components to its manufacturing portfolio.
“This acquisition is a major step forward in Dixon’s journey, enhancing our capabilities in developing and producing key modules for various high-growth sectors”, said Atul B Lall, Vice Chairman and MD of Dixon Technologies.
Despite the announcement, Dixon Technologies' shares slipped slightly, closing 0.5 percent lower at Rs 15,818.20 on the BSE.
The partnership between Dixon and the Q Tech Group is seen as a strategic alignment to bolster India's position in high-end electronics manufacturing, especially in a rapidly evolving tech-driven market.
