Dixon Technologies (India) Limited has executed a binding term sheet on June 9, 2026, for a proposed joint venture arrangement with Gemtek Technology Co., Ltd. and its wholly owned subsidiary Dixon Electroconnect Private Limited.
The joint venture will be structured such that upon consummation of the transaction:
- 60% of the total paid-up share capital of Dixon Electroconnect will be held by Dixon Technologies
- 40% of the total paid-up share capital of Dixon Electroconnect will be held by Gemtek Technology
Business Purpose
The joint venture will engage in manufacturing and supply of:
- Optical Transceiver - SFP (Small Form-factor Pluggable)
- BOSA (Bidirectional Optical Subassembly)
- Other telecom products as may be mutually agreed by the parties from time to time in India
Current Status
As of the execution date, Dixon Electroconnect is a wholly owned subsidiary of Dixon Technologies and is proposed to be the joint venture company for this transaction. The company is a beneficiary under the Electronics Components Manufacturing Scheme (ECMS).
Conditions Precedent
The consummation of the proposed transaction is subject to:
- Signing of definitive agreements
- Completion of customary conditions precedent
- Receipt of applicable statutory, regulatory and other approvals, if any
Management Commentary
Mr. Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies, stated this joint venture marks Dixon's official entry into the rapidly growing data center, telecom & optical connectivity ecosystem. The partnership combines Dixon's large-scale manufacturing capabilities with Gemtek's global expertise in high-speed optical modules, telecom infrastructure & networking technologies.
Mr. Howard Chen, Chairman of Gemtek Technology Co., Ltd., stated this represents an important step in Gemtek's global footprint and reinforces their commitment to expanding their optical communication business to address evolving demands for high-speed network and data center infrastructure.