Shares of Dixon Technologies Ltd rallied 9% to hit a 52-week of ₹6,034.95 in Friday's (December 1) trade following the launch of a Xiaomi smartphone manufacturing facility in Noida. At 12 pm, the scrip was trading 6.79% higher at ₹5,885 apiece on the NSE.
The Dixon Technologies stock has given a return of 50% in the last six months. In comparison, the benchmark Nifty50 index has given a return of 9.71% during the same period.
Dixon's wholly-owned subsidiary Padget Electronics has set up a smartphone manufacturing facility at an investment of ₹256 crore, and has started the production of smartphones for Xiaomi. The factory has an annual production capacity of 25 million units per annum.
"It is a momentous step towards our commitment to boosting the local smartphone manufacturing ecosystem in India. We believe that this association will leverage our excellence and superior execution and Xiaomi's expertise and leadership in the Indian business ecosystem," Dixon Technologies Executive Chairman Sunil Vachani said.
Dixon's new manufacturing facility to create jobs
Union minister Ashwini Vaishnaw said that Dixon's new manufacturing facility will create 5,000 jobs. “We have seen complex manufacturing at the latest facility. It is a fitting answer to those who claim that India is only doing assembly,” he said.
Vaishnaw indicated a significant rise in domestic value addition, reaching as high as 60% in certain products.
The minister also said that the incremental job creation in the smartphone industry, attributing it to the Production-Linked Incentive (PLI) scheme. The scheme has reportedly contributed to the creation of 5 lakh jobs.
First Published: Dec 1, 2023 12:20 PM IST
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