Dixon Technologies signed an agreement with Motorola to manufacture the brand's smartphones in India and as the pact announcement was made, share prices of the Indian electronic maker surged over 6%.
"Dixon's wholly-owned subsidiary, Padget Electronics, has signed an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget's manufacturing facility situated at Noida, Uttar Pradesh,” Dixon said in an exchange filing on Monday. Afterwards on the day, Dixon's shares closed 6.19% higher at Rs 13509.60 a piece on BSE.
Atul B Lall, vice-chairman at Dixon also expressed optimism over a potential long term agreement, he said, "We are positive that this is just a starting leg of a long and prolific relation. We will be doing smartphones for Motorola."
Padget Electronics, a wholly owned subsidiary of Dixon, is one of the only five Indian companies to have the approval to receive incentives for incremental production of mobile phone headsets under the Centre's PLI scheme. For setting up its 11th manufacturing plant in Noida, Dixon has invested Rs 75 crore.
Owned by gadgets brand Lenovo, Motorola Mobility was in talks with Indian manufacturers in September, planning to lend out a contract worth $1 billion, to assemble smartphones. However, Lenovo and Motorola together hold even less than 1% smartphone market share in the country.
