Dixon Technologies' wholly-owned subsidiary, Dixon Electro Manufacturing, has signed an MoU with Cellecor Gadgets for the manufacturing of refrigerators and related components, according to a company filing on December 26.
Shares of Dixon Technologies were marginally higher in ealry trade on December 27, and on YTD basis, are higher by 181%. Cellecor Gadgets' shares were at higher by 5% in early trade, with a market capitalization of around Rs 1,300 crore.
Cellecor is known as a leading Original Design Manufacturer and Original Equipment Manufacturer across products in the living appliances space like mobile phones, smart TVs, smartwatches, home and kitchen appliances.
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Atul Lall, vice chairman and managing director of the company said the collaboration is aligned with the ‘Make in India’ initiative, and enhances Dixon’s reach in the high margin refrigerator segment. Dixon has order book with marquee brands, and has started mass production for Voltas, Kelvinator, Acer, Lloyd and BPL. The company has backwardly integrated many processes and has plans to further invest in deep freezers, mini coolers, wine chillers, two-door frost free and side-by-side refrigerators.
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Atul Lall had previously said that the margins in the segment should improve once the company becomes completely operational on the component side. The segment promises to offer 'significant upside' on the margin front, he said.
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