Dixon Technologies hits 52-week high as subsidiary launches Xiaomi plant

Dixon Technologies Ltd witnessed a 9.5 per cent surge in its shares, reaching a record high of Rs 6,034.95 on December 1, following the inauguration of a Xiaomi smartphone manufacturing facility by its wholly-owned subsidiary, Padget Electronics, in Noida.

Over the past six months, Dixon Technologies stock has delivered a remarkable 50 per cent return, outperforming the Nifty50 index, which posted a 9.71 per cent return during the same period.

Padget Electronics invested Rs 256 crore in the new facility, boasting an annual production capacity of 25 million units. Dixon Technologies Executive Chairman, Sunil Vachani, expressed that collaboration with Xiaomi is a significant step towards enhancing local smartphone manufacturing in India.

Union Minister Ashwini Vaishnaw noted that Dixon's new plant is expected to create 5,000 jobs, emphasising its role in countering claims that India only engages in assembly. The minister also highlighted a potential rise in domestic value addition, reaching up to 60 per cent for certain products. The Production-Linked Incentive (PLI) scheme is credited with contributing to the creation of 5 lakh jobs in the smartphone industry.