Dixon Tech gains 5% on pact with boAt for new twin wireless speakers

Dixon Technologies (India) shares traded 5 per cent higher at Rs 15,214, also their fresh record high, on the BSE on Thursday after the company announced that it has entered into an agreement with Imagine Marketing Private Limited (boAt) for manufacturing of Twin Wireless Speakers.

Dixon shall be manufacturing the said products from its manufacturing facility located at Noida, Uttar Pradesh. boAt is the leader in the earwear segment. Their high quality audio devices are known for their style and efficiency.

On December 28, the company’s wholly-owned subsidiary Padget Electronics entered into an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget's manufacturing facility situated at Noida, Uttar Pradesh, the company said.

Padget Electronics is one of the few companies who recently received production linked incentive scheme (P/L scheme) approval from the government, it said.

The PLI schemes have two objectives— first, to transform India into an export hub in certain products by offering incentives to companies, incentives that are primarily aimed at neutralising the cost disadvantage they face vis-a-vis countries like China and Vietnam. Second, move towards “Atmanirbhar Bharat” by encouraging domestic production and reducing imports.

Dixon Technologies (India) is engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs; home appliances like washing machines; lighting products like LED bulbs and tubelights, downlighters; mobile phones; and CCTV & DVRs and medical equipment.

In the past three months, the stock has zoomed 75 per cent, as compared to 21 per cent rise in the S&P BSE Sensex.

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