Dixon Technologies (India) Ltd. inked a memorandum of understanding with the Tamil Nadu government on Wednesday for the establishment of a factory worth Rs 1,000 crore near Chennai.
The facility will be built in Oragadam in Kancheepuram district and is expected to create 5,000 jobs, according to a statement from the state government.
The electronics manufacturing service firm will build the factory in Indospace Industrial Park, 45 km away from Chennai. The factory will manufacture laptops and all-in-one personal computers and provide electronic manufacturing services to companies.
In a press release, the government said Dixon Technologies, established in 1993, has been providing contract manufacturing services to various companies, including Samsung, Xiaomi, Motorola, boAt, Panasonic, TCL Technologies, and OnePlus.
Tamil Nadu has received investment commitments worth Rs 10,14,368 crore by signing 895 MoUs with various companies since May 2021, creating 32 lakh jobs in the state. The government said it is taking all necessary measures to become a $1 trillion economy by 2030 while continuing to generate employment.
Citing an economic research report, the government said the state achieved 9.69% growth in Fiscal 2024–25 — the highest in the past 10 years — securing the top rank among Indian states, according to the release.
Shares of Dixon Technologies closed 2% higher at Rs 13,282.45 apiece, compared to a 0.61% decline in the benchmark Nifty. The share price has fallen 72.67% in the last 12 months and 25.95% on a year-to-date basis.
Eighteen out of the 31 analysts tracking the company have a 'buy' rating on the stock, five suggest 'hold' and eight recommend 'sell', according to Bloomberg.
(With PTI Inputs)
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