Dixon's JV with Longcheer Approved by Govt

New Delhi, Jul 25 (PTI) Dixon Technologies has received approval from the Indian government to form a joint venture (JV) with Chinese peer Longcheer, according to a regulatory filing.

The JV will be formed between Dixon and Longcheer's Singapore-based subsidiary.

"Dixon has received approval from MEITY to form a prospective joint venture (JV) in India with Longcheer, through an optimum structure to be mutually agreed between Dixon and Longcheer such that... 74 per cent of the total paid up share capital of the joint venture company is held by Dixon and 26 per cent...is held by Longcheer," the filing dated July 24 said.

The JV will be called Dixtel Infocomm after closing of definitive agreements between the two companies.

"Upon consummation of the transaction, Dixtel, the proposed joint venture company, shall carry on the business of manufacture and supply of smart phone/tablets, true wireless stereo, smart watch, AI PC, automotive electronics, healthcare devices, etc.

Besides making products for companies like Vivo, Xiaomi, Oppo, Samsung etc, Longcheer also designs products.

"This collaboration shall introduce several key advancements, particularly in Original Design Manufacturer (ODM) expertise and will facilitate the localisation of the non-semiconductor sub-component manufacturing in India," the filing said.

Dixon has been reaching out to several Chinese companies for joint ventures.

It has signed separate agreements with Chinese electronic component firms -- Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology -- for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others.

The company's JV with Chinese smart devices maker Vivo is also in the works.