Dixon Technologies, through its subsidiary Dixon Electro Manufacturing, has entered into a Memorandum of Understanding (MoU) with Cellecor Gadgets to manufacture refrigerators and related components. The announcement was made in a company filing on December 26. Cellecor Gadgets is recognized as a leading Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) in the consumer appliances segment, producing mobile phones, smart TVs, smartwatches, and kitchen appliances.
Atul Lall, the managing director of Dixon Technologies had said during the deal annunciation, the transaction considers the alignment of the prime minister government’s ‘Make in India’ vision alongside increasing presence in the large-format and high-margin refrigerator business.
It presently has an order book with various recognisable brands and has also started volume production for Voltas, Kelvinator, Acer, Lloyd, and BPL, among others. The integration of several processes which this aims at a much extensive diversification program, including, among them, is the introduction of some other products lines that might include deep freezers, mini coolers, wine chiller’s two door frost-free, as well as side-by-side refrigerator types.
Lall had said that margins in the refrigerator segment would improve as the company builds up its capabilities on the component manufacturing front. He expressed optimism that there was a possibility of significant growth in profitability from this segment.
After the announcement, Dixon Technologies shares jumped in late trading on December 26 and rose 181% in the year so far, while Cellecor Gadgets shares changed hands at Rs 61.20, translating into a market capitalization of around Rs 1,300 crore.
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Source: Moneycontrol
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