“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 to manufacture of telecom and networking products like modems, routers, set-top boxes, IoT devices, etc for the telecom sector/industry including Airtel,” Dixon said in an exchange filing on Wednesday.
“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,” it said.
This would be the first time that both companies will foray into the telecom equipment manufacturing business. Airtel’s rival Reliance Jio is likely to source its network equipment from long-time partner Samsung which is also likely to apply for the scheme and start making telecom products in India, ET had reported.
“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 manufacturing telecom and networking products,” said Saurabh Gupta, CFO, Dixon Technologies.
“With Dixon’s excellent track record in the manufacturing industry & Bharti’s deep expertise in Telecom, this venture will be well-positioned to be a key player in its space,” said Deven Khanna, Group Director, Bharti Enterprises.