Post execution of mutually acceptable agreements by the parties, the JV company will be 74% owned by Dixon and 26% owned by Bharti Enterprises.
Domestic electronics maker Dixon and Bharti Enterprises have agreed to form a joint venture company (JV) which will undertake to manufacture telecom and networking products like modems, routers, set-top boxes, IoT devices, etc.
The said JV company will file necessary applications with the ministry of communications or any other nodal agency to avail benefits under the production-linked incentive scheme (PLI) scheme. Post execution of mutually acceptable agreements by the parties, the JV company will be 74% owned by Dixon and 26% owned by Bharti Enterprises.
“It gives us immense pleasure that we have partnered with Bharti which is an iconic brand. 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 manufacturing telecom and networking products,” Saurabh Gupta, CFO, Dixon Technologies, said.
Deven Khanna, group director, Bharti Enterprises said, “Telecommunications sector has played a pivotal role in facilitating the growth of the economy and is a key enabler of digital connectivity and Digital India. With Dixon’s excellent track record in the manufacturing industry and Bharti’s deep expertise in telecom, this venture will be well-positioned to be a key player in its space”.
The government has unveiled a PLI scheme for the telecom equipment sector with an outlay of Rs 12,195 crore that will lead to incremental production of Rs 2.4 lakh crore over five years, of which Rs 2 lakh crore will be for exports. It is expected that the scheme will bring an investment of more than Rs 3,000 crore and the government will get over Rs 17,000 crore in tax revenues.
The scheme will offer a 4% to 7% incentive to medium and small enterprises (MSMEs) on a minimum incremental investment of Rs 10 crore over five years. For other firms, the incentive ranges from 4% to 6% on an incremental investment of Rs 100 crore.