Dixon partners Chinese firm Chongqing to set up electronics component joint venture

New Delhi, Jul 15 (PTI) Domestic electronic contract manufacturing firm Dixon on Tuesday said it has collaborated with Chinese company Chongqing Yuhai Precision Manufacturing Co Ltd for manufacturing and supply of precision components used in electronic products like laptop, mobile phones etc.

Dixon Technologies has announced its participation in Rs 22,919 crore incentive-based Electronics Components Manufacturing Scheme.

Dixon Technologies (India) Ltd and Chongqing Yuhai Precision Manufacturing Co Ltd have entered into a binding term sheet to form a prospective joint venture in India, the company said in a filing.

Dixon is proposed to hold 74 per cent stake in the JV and the rest will be held by Chongqing.

The JV will carry on the business of manufacturing and supply of precision components for laptop, mobile phones, IoT, automotive and any other products which both parties agree in India.

"We are delighted to announce our strategic collaboration with Chongqing Yuhai Precision Manufacturing Co Ltd, a global leader in mechanical enclosures through a prospective Joint Venture," Dixon Technologies (India), Vice Chairman & Managing Director, Atul B Lall said in the filing.

The joint venture is subject to receipt of necessary statutory approvals and signing of definitive agreements, the filing said.

"This Joint venture with Chongqing will focus on manufacturing precision mechanical & metal parts and components for a wide range of applications including laptops, mobiles, IOT, automotive which is a significant step in our effort towards localisation of key components, deepening backward integration in Dixon value chain and supporting the Make in India initiative of the government," Lall said. PTI PRS DRR