Dixon Technologies, Beetel to create JV for telecom and networking products

Dixon Technologies (India) Limited, an electronic manufacturing service provider, said that its fully-owned subsidiary — Dixon Electro Appliances Private Limited has executed a joint venture (JV) deal with Beetel Teletech Limited.

The joint venture company is planned to carry out the manufacturing of telecom and networking products. These will include products that are manufactured in accordance with the Indian government’s ‘Production Linked Scheme to Promote Telecom and Networking Products Manufacturing in India’.

Dixon Technologies (India) expects the joint venture to see a capital expenditure of INR 180 crores over a period of four years starting from FY 21-22. The joint venture is estimated to have an annual turnover of INR 1,400-1,600 crores.

Dixon Electro Appliances will become the joint venture company. As part of the deal, it will acquire a factory of Beetel Teletech located in Ludhiana on a slump sale basis for manufacturing the telecom and networking products.

Beetel Teletech will hold a 49% stake in the joint venture, while Dixon Technologies (India) will own the remaining 51% stake.