Bharti Enterprises and Dixon have inked a pact to form a joint venture company, with a view to apply for government’s production-linked incentive (PLI) scheme for manufacturing of telecom and networking products, according to a regulatory filing.
Post the execution of mutually-acceptable agreements, the JV company will be 74 per cent owned by Dixon and 26 per cent by Bharti Enterprises.
The JV company would undertake manufacturing of telecom and networking products like modems, routers, set top boxes, IOT devices, and other products for the telecom industry including Airtel.
“Dixon has entered into memorandum of understanding with Bharti Enterprises Ltd to form a Joint venture (JV),” Dixon Technologies said in a BSE filing.
Dixon’s wholly-owned subsidiary- Dixon Electro Appliances or any other company identified by the parties will be the JV company which would undertake manufacturing of telecom and networking products like modems, routers, set top boxes, Internet of Things (IoT) devices, and other items for the telecom sector including Airtel.
The JV will file necessary applications with the Ministry of Communications or any other nodal agency to avail benefits under the PLI scheme.
Deven Khanna, Group Director of 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”.
Telecom sector has played a pivotal role in facilitating growth of the economy and is a key enabler of digital connectivity and Digital India, Khanna said.
With Dixon’s strong track record in manufacturing industry and Bharti’s expertise in telecom, the venture will be well positioned to be a key player in its space, according to Khanna.
Dixon Technologies, CFO Saurabh Gupta, said, “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”.
Dixon Technologies (India) is a home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones/smart phones markets in India.
Bharti Enterprises is one of India’s leading business groups with diversified interests in telecom, space, financial services, real estate, hospitality, agri and food. PTI