Dixon Technologies shares hit record high with new Xiaomi production facility

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Dixon Technologies shares hit record high with new Xiaomi production facility
Credit: © Reuters.

INDIA - Dixon Technologies' stock soared to an all-time peak today, as Padget Electronics, a subsidiary, began manufacturing Xiaomi (OTC: XIACF ) smartphones at its new Noida plant. The shares opened at ₹5,865 and climbed to ₹5,885 by midday, marking a significant six-month surge of 50%, which far outpaces the Nifty50's increase of 9.71%.

The new ₹256 crore (INR100 crore = approx. USD12 million) facility, inaugurated today by IT Minister Ashwini Vaishnaw, spans 2.7 lakh square feet and is designed for an annual production capacity of 25 million smartphones. This move is expected to create around 5,000 jobs, contributing notably to India's employment landscape. The plant's establishment aligns with the government's Production Linked Incentive (PLI) scheme, which has been pivotal in generating half a million jobs within the smartphone industry.

Sunil Vachani, Executive Chairman of Dixon Technologies, emphasized the strategic importance of their partnership with Xiaomi, stating it as a key factor in bolstering India's manufacturing prowess. The Union Minister also acknowledged the substantial employment opportunities spurred by the PLI scheme.

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