Dixon Technologies (India) Limited has executed a joint venture agreement with Gemtek Technology Co., Ltd. and its wholly owned subsidiary Dixon Electroconnect Private Limited on October 7, 2026. This follows a binding term sheet signed on June 9, 2026.
The JV agreement establishes that Dixon Electroconnect will manufacture and supply Optical Transceiver - SFP (Small Form-Factor Pluggable) and BOSA (Bidirectional Optical Subassembly) or other mutually agreed telecom products in India.
Shareholding Structure
Upon completion of the Proposed Transaction (expected by February 3, 2027), the shareholding in Dixon Electroconnect will be:
- Dixon Technologies (India) Limited: 60%
- Gemtek Technology Co., Ltd.: 40%
Neither company will acquire any stake in each other through this transaction.
Governance Structure
The JV agreement specifies:
- Dixon Technologies has right to nominate 3 directors on the JV Company board
- Gemtek has right to nominate 2 directors on the JV Company board
- Dixon Technologies has right to nominate the Chairman of the board
- Both parties have information rights regarding JV Company affairs
Financial Details
As of March 31, 2026, Dixon Electroconnect had:
- Turnover: NIL (not commenced operations)
- Authorized share capital: INR 1,00,000
- Paid-up share capital: INR 1,00,000
The investment will be made through subscription of equity shares based on valuation reports in compliance with applicable laws.
Business Rationale
The JV combines Dixon's manufacturing capabilities with Gemtek's expertise in high-speed optical modules and telecom infrastructure. The venture aims to address demand from artificial intelligence, cloud computing, hyperscale data centers, high-speed networking, and next-generation optical communication solutions.
The disclosure is made pursuant to Regulation 30 read with Part A of Schedule III of SEBI LODR Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.