In Short:
Dixon Technologies plans to acquire a majority stake in Ismartu India, a manufacturing subsidiary of Chinese phone maker Transsion Holdings. Ismartu makes phones under Itel, Infinix and Tecno brands in Noida. Dixon signed a share purchase agreement for a 50.10% stake and plans further acquisitions. The deal is subject to approval by the Competition Commission of India. This move aims to strengthen Dixon’s position in India’s mobile phone manufacturing industry.
New Delhi: Top Indian contract manufacturer Dixon Technologies Tuesday announced its plans to acquire a majority stake in Ismartu India, a manufacturing subsidiary of Chinese phone maker Transsion Holdings.
Acquisition Details
Ismartu manufactures feature and smartphones under the brands of Itel, Infinix, and Tecno at its three factories in Noida. Dixon Technologies has entered into a share purchase agreement with Ismartu In Pte. Limited, Transsion Technology Limited, 5A Advisors LLP, and Ismartu India Private Limited for the proposed acquisition of a majority stake constituting 50.10%.
There will be further acquisitions in tranches in Ismartu and a shareholders’ agreement with Ismartu Singapore, 5A Advisors LLP, and Ismartu for operation and management of the company. The consummation of the transaction will be subject to approval of the Competition Commission of India (CCI) and other customary closing conditions.
Statements from Dixon Technologies
“This acquisition is a momentous milestone for us, solidifying our positioning for sustained success and continued leadership in the mobile phones manufacturing industry in India,” said Atul B Lall, Vice Chairman & Managing Director of Dixon Technologies.
“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 organization. The combined expertise, resources, engineering prowess, and other manufacturing capabilities of both the companies will further capitalize on growth opportunities in the burgeoning Indian EMS industry,” he added.
Backdrop of the Deal
The deal comes amid greater scrutiny of Chinese firms operating in the handset ecosystem. The Indian government desires Indian companies and executives to have more influence over the country’s mobile phone industry, currently dominated by Chinese handset brands.
Dixon Technologies, India’s largest electronics contract manufacturer, manufactures smartphones and feature phones for brands such as Xiaomi, Motorola, Samsung, and Jio among others. It has a manufacturing capacity of 30 million smartphones and 50 million feature phones at its four plants in Noida.
