Contract manufacturer Dixon has entered into a memorandum of understanding with Bharti Enterprises Ltd to form a joint venture in order to apply for the Indian government’s Production Linked Incentive (PLI) scheme for manufacturing of telecom and networking products. According to a release shared by the two companies, Dixon’s wholly owned subsidiary- Dixon Electro Appliances Private Limited or any other Company identified by the parties will be the JV Company and will undertake manufacturing of telecom and networking products like modems, routers, set top boxes, IOT devices, and more 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 PLI Scheme of the Government of India. Post execution of mutually acceptable agreements by the parties, the JV Company will be 74 percent owned by Dixon and 26 percent owned by Bharti Enterprises.
Commenting on this occasion, Saurabh Gupta, CFO of 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.”
Mr. 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.”