Today, electronics maker Dixon Technologies announced that it has signed a MoU with Bharti Enterprises. The move comes so that the two firms can form a Joint Venture. The JV will then apply for the government’s PLI scheme for telecom and networking products manufacturing.
Notably, the said PLI Scheme was announced in February 2021, allocating Rs. 12,200 Crores for the scheme.
A JV for the PLI Scheme
The company filed a regulatory filing on Wednesday. The filing stated that Dixon’s subsidiary, Dixon Electro Appliances Private Limited will form a part of the JV company. However, the company also noted that it could be any other company as well. Dixon and Bharti will identify the third company.
Further in the filing, the Company listed out the telecom and networking products which it will manufacture. The list includes modems, routers, set top boxes, IoT devices and so on. Notably, Dixon Technologies already have a background in making consumer electronics and set top boxes.
Adding to that, the company said that themselves and Bharti will jointly own the JV firm. According to the filing, Dixon Technologies will own 74%, while Bharti Enterprises will own 26%.
Both the companies will file the necessary applications soon. Notably, they will apply with the Telecom Ministry or any other nodal agency to avail benefits under the PLI Scheme.
Saurabh Gupta, CFO, Dixon Technologies said that they see Bharti Enterprises as an “ideal long-term strategic partner”. He further added that Bharti shares core values with them. These core values include focus on quality, engineering prowess, innovation and customer satisfaction. Concluding his notes, he said that the company intend to “leverage each other’s strengths to manufacture telecom and networking products”.