Dixon Technologies Ltd. has entered into a Term Sheet with Mega Alliance Holdings Ltd. to form a joint venture for designing and manufacturing mobile communication equipment and related solutions in India.
Dixon will hold 51% of equity share capital and Mega Alliance—which is part of Tinno Group—will hold the remaining 49% in the prospective joint venture company, according to a company statement.
The proposed joint venture will undertake research and development, product designing, supply chain of multiple product categories like smartphones, IT hardware products, IoT-based products and other similar devices that facilitate voice and data communications for domestic and international market.
The manufacturing of smartphones will be done by Dixon's 100% subsidiary, Padget Electronics Pvt., which is a beneficiary under the mobile product-linked incentive scheme of the government
“Dixon Group is continuously encouraged by the Government of India's initiatives in making India a global manufacturing hub for electronics. Aligned with Government's vision, we are constantly taking strategic initiatives to emerge as one of the domestic champion in electronic space, by not only providing manufacturing solutions but also striving to be a trusted source in technology and R&D space," said Atul B Lall, vice chairman and managing director of Dixon Group.
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