Electronics manufacturing services company Dixon has entered into a Memorandum of understanding (MoU) with Bharti Enterprises to form a joint venture (JV).
As per the statement released by the company, 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 JV Company will file necessary applications with the Ministry of Communications or any other nodal agency to avail benefits under the Production Linked Incentive (PLI) scheme of Government of India. Post execution of mutually acceptable agreements by the parties, the JV Company will be 74% owned by Dixon and 26% owned by Bharti Enterprises.
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 and 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 and there is immense potential to further build on our shared capabilities to deliver sustainable growth,” Gupta added.
Deven Khanna, Group Director, Bharti Enterprises, said, “We are pleased to join hands with Dixon Group to strengthen India’s electronics manufacturing sector and 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 and Bharti’s deep expertise in Telecom, this venture will be well positioned to be a key player in its space,” Khanna said.