Electronic products maker Dixon Technologies on Wednesday said it has signed a MoU with Bharti Enterprises to form a joint venture in order to apply for the government’s production-linked incentive (PLI) scheme for manufacturing of telecom and networking products.
“Dixon’s wholly owned subsidiary- Dixon Electro Appliances Private Limited or any other Company identified by the parties will be the JV Company which will undertake manufacturing of telecom and networking products like modems, routers, set top boxes, IOT devices, etc for the telecom sector/industry, including Airtel,” the company said in a regulatory filing.
It added that the JV firm, in which post the execution of mutually acceptable agreements, 74% will be owned by Dixon and 26% by Bharti Enterprises, will file necessary applications with the Ministry of Communications or any other nodal agency to avail benefits under the PLI Scheme.
Saurabh Gupta, CFO, Dixon Technologies said, “We see them [Bharti] as our ideal long-term strategic partner who shares our core values: focus on quality, engineering prowess, innovation and customer satisfaction & we intend to leverage each other’s strengths to manufacture telecom and networking products.”
Deven Khanna, Group Director, Bharti Enterprises said, “With Dixon’s excellent track record in manufacturing industry & Bharti’s deep expertise in Telecom, this venture will be well positioned to be a key player in its space.”
The shares of Dixon Technologies (India) were trading up by 0.82% or ₹28.65 per share at ₹3,510.60 per share on BSE at 1.51 p.m.
