Dixon Technologies (India) engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India on April 7 has entered into Memorandum of understanding (MOU) with Bharti Enterprises to form a Joint venture (JV).
Dixon's wholly owned subsidiary- Dixon Electro Appliances 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 said JV Company will file necessary applications with the Ministry of Communications or any other nodal agency to avail benefits under the PLI Scheme of Government of India.
Post execution of mutually acceptable agreements by the parties, the JV Company will be 74% owned by Dixon & 26% owned by Bharti Enterprises.
Commenting on this occasion, Saurabh Gupta, CFO, Dixon Technologies said, "It gives us immense pleasure that we have partnered with Bharti which is an iconic brand. We are delighted and encouraged by the trust they have bestowed on Dixon for this collaboration. We see them 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. We are confident that this is just the beginning of a long and prolific association & there is immense potential to further build on our shared capabilities to deliver sustainable growth."
Deven Khanna, Group Director, Bharti Enterprises said, "We are pleased to join hands with Dixon Group to strengthen India's electronics manufacturing sector & to contribute to government’s vision of an Atmanirbhar Bharat. Telecommunications sector has played a pivotal role in facilitating growth of the economy and is a key enabler of digital connectivity and Digital India. 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."
Shares of the company gained Rs 146.15, or 4.2%, to settle at Rs 3,628.10. The total volume of shares traded was 23,817 at the BSE (Wednesday).
