Dixon Tech Gets Govt Approval For JV With China's Longcheer

Dixon Technologies (India) Ltd. has received approval from the Indian government to set up a joint venture with China's Longcheer Intelligence Pte. Ltd., according to an exchange filing on Thursday.

The nod for the JV was issued by the Ministry of Electronics and Information Technology under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, the filing stated.

Under the proposed JV, 74% of the stake will be owned by Dixon Tech, whereas the remainder 26% will be held by Longcheer.

The announcement comes two days after NDTV Profit had reported, citing sources, that India may approve joint ventures between domestic firms and Chinese partners in strategic sectors such as electronics, renewable energy, and infrastructure.

Dixon, in its exchange filing, said the JV company will carry on the business of manufacture and supply of smartphones, tablets, true wireless stereo, smart watch, AI PC, automotive electronics, and healthcare devices.

"This collaboration introduces several key advancements, particularly in Original Design Manufacturer (ODM) expertise, which will allow Dixon to gain ODM capabilities in mobile phones and other electronics products for domestic and export markets," it said.

The JV will also bring in advanced product design expertise, allowing Dixon to go beyond assembly and develop in-house capabilities for smartphones, IoT devices, and other consumer electronics, it added.

"Additionally, it will facilitate the localisation of non-semiconductor sub-component manufacturing, including precision mechanics, which are currently imported. The venture will also strengthen software-hardware integration, ensuring that both design and product development take place in India," the filing further stated.

Shares of Dixon Tech closed 1.29% higher at Rs 16,767.8 apiece on the BSE, compared to 0.66% decline in the benchmark Sensex.