Dixon Tech forays into lithium-ion batteries in a step toward backward integration

About this update from Dixon Technologies (india) Ltd.

Dixon Tech, a leading manufacturing partner of major electronics brands such as Samsung, Xiaomi, HP, Lenovo and others, has forayed into the manufacturing of lithium-ion batteries, battery packs and modules, in a step toward backward integration and cost efficiency.The company had recently set up a wholly owned subsidiary - Dixon Electrocorp - for which the subscription money was paid on September 29, 2025, subscribing to the equity shares of the company for a cash consideration."The wholly owned subsidiary has been incorporated with an object to undertake manufacturing and dealing in, inter-alia, all kind of electronic related products including batteries, lithium-ion (“Li-ion”) battery, li-ion battery cell, Li-ion Cells for digital applications, battery pack and battery modules, related products, equipment and components thereof," the company filing said.Dixon Share SelloffShares of Dixon Tech are sharply lower by over 3.5 percent on September 30. While the setting up of a wholly owned subsidiary to make lithium-ion batteries will be a positive step for Dixon Technologies, investors and analysts may wait for more clarity in terms of execution plan and project details, which may keep the gains in the share price checked. Over the last five trading sessions, the shares of Dixon Tech are down by over 11 percent.Incentive Under ECMSEarlier this year, the Cabinet had approved the Electronics Component Manufacturing Scheme with a funding of Rs 22,919 crore to become more self reliance in the electronics supply chain. As part of the scheme, the domestic manufacturing of li-ion cells for digital applications, excluding storage and mobility were to be incentivized. The scheme provided differentiated incentives to manufacturers to acquire technological capabilities and economies of scale, Centre had said in March 2025 during the launch of the scheme.The scheme had proposed to attract investment of Rs 59,350 crore into the electronics component manufacturing ecosystem, targetting production of Rs 4.56 lakh crore worth of goods and generate additional direct employment of over 91,000 persons."We see ECMS, that's Electronic Component Manufacturing Scheme, a scheme launched on 8th of April by the government of India as a strong enabler for backward integration, cost efficiency and low value, long-term value creation and have committed to leverage this scheme to enhan...

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