Dixon-Bharti Enterprises JV to seek PLI for telecom, networking products
Nidhi Singal April 7, 2021
Homegrown company Dixon Technologies has entered into a Memorandum of Understanding (MoU) with Bharti Enterprises Ltd to form a joint venture (JV) to undertake manufacturing of telecom and networking products like modems, routers, set-top boxes, IoT devices, etc., for the telecom sector, including Airtel. The said JV 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.
Dixon Technologies (India) manufactures products for the consumer durables, lighting and mobile phones markets in India. 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 manufacturing and post-execution of mutually acceptable agreements by the parties. The JV will be 74 per cent owned by Dixon and the remaining 26 per cent will be owned by Bharti Enterprises.
"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," said Saurabh Gupta, CFO, Dixon Technologies.
"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," said Deven Khanna, Group Director, Bharti Enterprises.
In February this year, the Cabinet had approved the PLI scheme for telecom and networking products. Operational from April 1, 2021, the scheme will give telecom manufacturing a boost with an outlay of Rs 12,195 crores over 5 years, leading to enhanced production of more than Rs 2.4 lakh crore. It is expected that the scheme will bring an investment of more than Rs 3,000 crore and generate huge direct and indirect employment and taxes both.