Dixon to buy Chinese firm Transsion’s India arm

Contract manufacturer of LED TVs, refrigerators, and mobile phones Dixon Technologies Ltd has agreed to purchase a majority stake in Ismartu India that makes electronic devices under ‘Itel’, ‘Infinix’, and ‘Tecno’ brand names.

Ismartu India is a manufacturing arm of Chinese smartphone maker Transsion Technology Ltd.

Dixon, which manufactures handsets for Motorola, Xiaomi, Samsung, and Jio, will purchase a 50.10% stake in Ismartu and will further increase its investment by buying more stakes and taking over the operation and management of Ismartu, the company said in a press release.

The transaction will be subject to regulatory approvals.

Ismartu operates three manufacturing plants in Noida, Uttar Pradesh.

“The ‘ismartu” team brings a wealth of experience and knowledge to the table. The combined expertise, resources, engineering prowess and other manufacturing capabilities of both the companies will further capitalize on growth opportunities in the sector, ” Atul B. Lall, vice-chairman and managing director of Dixon Technologies, said.

Shares of Dixon Technologies closed about 0.75% higher from the previous session on Tuesday before climbing a further 2% to trade at ₹7,849 apiece at 1.30pm on Wednesday.