Dixon Technologies India Ltd receives approval from MEITY for JV

Dixon Technologies (India) Limited ("Dixon") has received approval from the Ministry of Electronics and Information Technology, Government of India ("MEITY") under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 ("NDI Rules"), as amended from time to time, to set up a joint venture company in India along with Longcheer Intelligence Pte. Ltd. ("Longcheer"). Dixon has received approval from MEITY to form a prospective joint venture in India with Longcheer, through an optimum structure to be mutually agreed between Dixon and Longcheer such that (i) 74% (seventy-four percent) of the total paid up share capital of the joint venture company is held by Dixon and (ii) 26% (twenty-six percent) of the total paid up share capital of the joint venture company is held by Longcheer, subject to signing of definitive agreements.

Pursuant to the said FDI approval, effective from the closing date of such definitive agreements, Dixtel Infocom Private Limited ("Dixtel"), currently a wholly owned subsidiary of Dixon, shall become the joint venture company and will be jointly held by Dixon and Longcheer in the ratio of 74:26.

The NDI Rules (read with paragraph 3.1.1 of the Consolidated Foreign Direct Investment Policy of 2020 and specifically Press Note 3 of 2020) prescribe that an entity of a country, sharing land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route ("PN3 Approval"). This approval received from MEITY vide letter dated July 23, 2025 ("Approval Letter") received as on today is a PN3 Approval for investment by Longcheer into Dixtel, the proposed joint venture company. The detailed terms and conditions of the approval are prescribed in the Approval Letter.

The joint venture company will carry on the business of manufacture and supply of smart phone/tablets, true wireless stereo, smart watch, AI PC, automotive electronics, healthcare devices, etc. This collaboration introduces several key advancements, particularly in Original Design Manufacturer (ODM) expertise, which will allow Dixon to gain ODM capabilities in Mobile Phones & other Electronics Products for domestic & export markets. This joint venture will bring in advanced product design expertise, allowing Dixon to go beyond assembly and develop inhouse capabilities for smartphones, IoT devices, and other consumer electronics. Additionally, it will facilitate the localisation of non-semiconductor sub-component manufacturing, including precision mechanics, which are currently imported. The venture will also strengthen softwarehardware integration, ensuring that both design and product development take place in India.

The formation of this joint venture is subject to signing of definitive agreements between the parties.

Shares of Dixon Technologies (India) Limited was last trading in BSE at Rs. 16698.05 as compared to the previous close of Rs. 16767.80. The total number of shares traded during the day was 18772 in over 4693 trades.

The stock hit an intraday high of Rs. 16910.00 and intraday low of 16675.00. The net turnover during the day was Rs. 315357515.00.

Source : Equity Bulls

Keywords

DixonTechnologiesIndia INE935N01020 ConsumerElectronics Approval MEITY JV