Shares of Dixon Tech (India) Ltd rose 3% to touch a day’s high of Rs 16,450 on 16th July, after the firm announced yesterday that it had entered into a binding Term Sheet with Chongqing Yuhai Precision Manufacturing Co. Limited to establish a prospective joint venture in India.

The joint venture will focus on manufacturing precision components for laptops, mobile phones, IoT devices, and automotive products. Other categories will be mutually agreed upon by the two companies.

The JV is still subject to regulatory approvals and final agreements. Both companies will finalise the structure as part of the setup process.

Dixon’s Vice Chairman & MD Atul B. Lall said the venture will help manufacture high-quality metal and mechanical parts in India. He called it a key step in boosting local production. It will also deepen Dixon’s backwards integration and align with the government’s ‘Make in India’ initiative.

Separately, Dixon also announced it will acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd (Q Tech India). The deal—through a mix of primary and secondary investments—will strengthen Dixon’s role in making and distributing camera and fingerprint modules. These modules are used in phones, IoT systems, and cars.

Q Tech India is part of the Q Tech Group, which operates through its entities based in Singapore and China.

At 10:58 AM, the shares of Dixon Tech were trading 2.58% higher at Rs 16,232 on NSE.

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