Dixon Technologies stock rises 2% today as company bets on data centre opportunity with Taiwanese partner, eyes Vivo JV

About this update from Dixon Technologies (india) Ltd.

Shares of Dixon Technologies rose over 2 percent on Thursday after the electronics manufacturer outlined plans to enter the fast-growing data centre hardware segment through a partnership with a Taiwanese company and announced a new manufacturing facility in Chennai.Dixon Technologies stock was trading at Rs 11,461 in afternoon trade, up 2.1 percent for the day.Speaking to CNBC-TV18 on the sidelines of an event, Dixon Technologies Founder and Chairman Sunil Vachani said Dixon has entered into a partnership with a Taiwanese company that is a global leader in IT hardware and data centre-related solutions.Vachani said the company sees significant opportunities in the IT hardware segment and plans to manufacture laptops and desktops in India through the partnership. A new facility being set up in Chennai is expected to become operational within the next eight to ten months.Share Markets Live Updates | Sensex, Nifty, GIFT Nifty TodayThe development marks Dixon's latest push beyond its core mobile phone and consumer electronics manufacturing business as it seeks to tap into rising demand for IT hardware and data centre infrastructure.Demand for such equipment has been growing globally amid rapid investments in artificial intelligence (AI), cloud computing and data centres. India, too, has seen a wave of announcements around new data centre projects and digital infrastructure investments in recent years.Apart from the IT hardware expansion, Vachani said Dixon remains hopeful of receiving regulatory approval for its proposed joint venture with Vivo. However, the management did not provide any fresh timeline, stating only that the proposal remains under active consideration by the government.The Vivo venture has been awaiting approval for several months. During the company's earnings interaction last month, management had indicated that the approval was expected soon and could add 12-15 million units of manufacturing volume in the first year of operations.Dixon Technologies reported revenue of Rs 10,510 crore in the January-March quarter of FY26, while adjusted profit after tax stood at Rs 181 crore. The company reported operating margins of 3.9 percent during the quarter.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified exp...

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