India’s leading contract manufacturer, Dixon Technologies, has announced its plans to buy a majority stake in Ismartu India, a manufacturing unit of Chinese phone maker Transsion Holdings. The acquisition will be made in two tranches, with Dixon initially acquiring a 50.10% stake for Rs 238.36 crore in an all-cash deal. The remaining stake will be acquired in the future for an aggregate consideration. Dixon intends to acquire a total of 55% stake in Ismartu India, which manufactures features and smartphones for brands like Itel, Infinix, and Tecno. This move is in line with Dixon’s strategy to expand its business and increase its manufacturing capacity.
Dixon’s acquisition of Ismartu India will allow the company to strengthen its position in the Indian market and tap into the growing demand for smartphones and feature phones. Ismartu India has three factories in Noida, where it manufactures devices for various brands. With this acquisition, Dixon’s manufacturing capacity is expected to increase by 10-12 million units.
The deal between Dixon and Ismartu India comes at a time when Chinese companies operating in the handset ecosystem in India are facing increased scrutiny. The Indian government is taking steps to promote Indian companies and executives in the country’s mobile phone industry, which is currently dominated by Chinese handset brands. This move is aimed at boosting local companies and reducing dependence on Chinese companies.
Dixon Technologies is India’s largest electronics contract manufacturer and has a strong presence in the mobile phone manufacturing sector. The company manufactures smartphones and feature phones for brands such as Xiaomi, Motorola, Samsung, and Jio, among others. It currently has a manufacturing capacity of 30 million smartphones and 50 million feature phones at its four plants in Noida.
The combined expertise and resources of Dixon Technologies and Ismartu India will enable the companies to capitalize on growth opportunities in the Indian electronics manufacturing services (EMS) industry. The EMS industry in India is witnessing significant growth, driven by factors such as increasing smartphone penetration, government initiatives like Make in India, and the rising demand for electronic devices.
The acquisition of Ismartu India will further strengthen Dixon’s position in the mobile phone contract manufacturing segment. According to Counterpoint, Dixon currently has a 32% market share in mobile phone contract manufacturing, making it the market leader in India. The company is followed by Foxconn and DBG Group, which manufacture devices for brands like Apple, Xiaomi, and Realme.
In conclusion, Dixon Technologies’ acquisition of a majority stake in Ismartu India is a strategic move to expand its business and increase its manufacturing capacity. This acquisition will allow Dixon to tap into the growing demand for smartphones and feature phones in India and strengthen its position in the mobile phone contract manufacturing segment. At the same time, it reflects the Indian government’s efforts to promote domestic companies in the mobile phone industry and reduce dependency on Chinese companies.
