Dixon to acquire majority stake in Transsion's manufacturing unit

Indian contract manufacturer Dixon Technologies said it plans to acquire a majority 50.10% share in Ismartu India, a subsidiary of Transsion Technology Limited. It said that further acquisitions in tranches would be made in Ismartu.

Through three different factories, Ismartu India makes handsets under the brands iTel, Infinix, and Tecno in India.

The acquisition aligns with Dixon Technologies' strategy to grow in this business segment and achieve strategic goals and business expansion.

“This acquisition is a momentous milestone for us, solidifying our positioning for sustained success and continued leadership in India's mobile phones manufacturing industry. The “ISMARTU” team brings a wealth of experience and knowledge to the table, and we are excited to work together to create a stronger, more diversified, and future-proof organisation,” Atul B. Lall, Vice Chairman & Managing Director Dixon Technologies (India) Limited said in a statement.

He said the combined expertise, resources, engineering prowess, and other manufacturing capabilities of both companies will further capitalise on growth opportunities in the burgeoning Indian EMS industry.

The consummation of this transaction will be subject to the approval of the Competition Commission of India (CCI) and other customary closing conditions.

“...there is immense potential to further build on the shared capabilities, such as those of other electronic product categories, the creation of a component ecosystem in India, and access to Global Markets, to deliver continued and sustainable growth.”

Dixon makes mobile handsets for Motorola, Xiaomi, Samsung, and Jio.

Moneycontrol reported on April 8 that Chinese smartphone giants Oppo and Vivo started engaging with various Indian contract manufacturers, including Dixon, and held preliminary discussions.