Dixon announced that it has gone into a Memorandum of understanding with Bharti Enterprises to bring together a joint venture in a bid to avail benefits offered by the government’s Production Linked Incentive (PLI) plan.
The company said that once the execution of mutually acceptable agreements takes place by the two companies, 74% of the joint venture (JV) company will be owned by Dixon while Bharti Enterprises will own 26% of the company.
The firm also said that Dixon or any other company found by the parties will be the JV company, and will tackle the making of telecom and networking products such as modems, routers, set-top boxes, IoT devices, etc for the telecom sector/industry as well as Airtel.
“Telecommunications sector has played a pivotal role in facilitating the growth of the economy and is a key enabler of digital connectivity and Digital India. With Dixon’s excellent track record in the manufacturing industry & Bharti’s deep expertise in Telecom, this venture will be well-positioned to be a key player in its space,” Deven Khanna, Group Director, Bharti Enterprises said.
This knowledge came a little bit after the Union Cabinet chaired by PM Narendra Modi approved the Production Link Incentive (PLI) scheme for developing white goods, which contains air-conditioners and LEDs and high-frequency solar PV modules in India.
Also, the government said that in more than 5 years, the PLI scheme will end up in an incremental investment of ₹7,920 crore, incremental production of ₹1,68,000 crore, exports of ₹64,400 crores, receive direct and indirect revenues of ₹49,300 crores. The scheme will also make up 4 lakh jobs in the country.