Enforcement Directorate (ED) seizes ~Rs 5551 crore from Xiaomi Technology

News: The ED has seized amount Rs 5551 crore of electronic major Xiaomi Technology under the violation of foreign exchange management.

Views: Dixon is the contract manufacture of LED TV for Xiaomi, Samsung, Panasonic etc. The LED TV division of Dixon (i.e. Consumer Electronic) contributes ~50% of its overall topline. Xiaomi is one the key customer for Dixon’s consumer electronic division and the said action by the ED would have repercussion on Dixon’s financials if not resolved.

Impact: Negative