Domestic electronics maker Dixon and Bharti Enterprises have agreed to kind a joint venture firm (JV) which will undertake to manufacture telecom and networking goods like modems, routers, set-top rated boxes, IoT devices, and so on.
The stated JV firm will file important applications with the ministry of communications or any other nodal agency to avail advantages below the production-linked incentive scheme (PLI) scheme. Post execution of mutually acceptable agreements by the parties, the JV firm will be 74% owned by Dixon and 26% owned by Bharti Enterprises.
“It gives us immense pleasure that we have partnered with Bharti which is an iconic brand. We see them as our ideal long-term strategic partner who shares our core values: focus on quality, engineering prowess, innovation and customer satisfaction and we intend to leverage each other’s strengths to manufacturing telecom and networking products,” Saurabh Gupta, CFO, Dixon Technologies, stated.
Deven Khanna, group director, Bharti Enterprises stated, “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 and Bharti’s deep expertise in telecom, this venture will be well-positioned to be a key player in its space”.
The government has unveiled a PLI scheme for the telecom gear sector with an outlay of Rs 12,195 crore that will lead to incremental production of Rs 2.4 lakh crore more than 5 years, of which Rs 2 lakh crore will be for exports. It is anticipated that the scheme will bring an investment of more than Rs 3,000 crore and the government will get more than Rs 17,000 crore in tax revenues.
The scheme will offer you a 4% to 7% incentive to medium and little enterprises (MSMEs) on a minimum incremental investment of Rs 10 crore more than 5 years. For other firms, the incentive ranges from 4% to 6% on an incremental investment of Rs one hundred crore.