AUGUST 20258DIXON TECHNOLOGIES & HKC TO FORM JV FOR LIQUID CRYSTAL MODULE SUPPLYESCORTS KUBOTA TO SET UP NEW TRACTOR PLANT IN YEIDA ZONEDixon Technologies (India) Limited has announced that it has entered into a Term Sheet with HKC Corporation Limited to form a joint venture in India. The joint venture will manufacture and supply Liquid Crystal Modules (LCM), for the Indian domestic market and for select international customers.The partnership will combine HKC's substantial capabilities in advanced display technologies and its global leadership in the space with Dixon's deep manufacturing expertise and broad footprint in India's electronic ecosystem.The Yamuna Expressway Industrial Development Authority (YEIDA) has given approximately 200-acre land to Escorts Kubota Limited for setting up a 4,500 crore tractor manufacturing unit.According to an official announcement released on Monday, the business has been given land in Sector-10 of YEIDA and signed a Memorandum of Understanding (MoU) with the Uttar Pradesh government on August 17, 2024, for the tractor manufacturing facility. "In the first phase, with an investment of 2,000 crore, the company will develop a tractor plant, a TOP STORIEScommercial equipment plant, and allied facilities. The second phase will be scaled up depending on market demand and the capacity utilization of the first phase," it said.Escorts Kubota will serve international markets in addition to domestic ones with its factory. The business also intends to set up shared services from India for Kubota's worldwide research and development (R&D) activities, it stated. The company was established in 2019 as a joint venture between Escorts, an Indian company, and Kubota, a Japanese company, with the purpose of launching the project to manufacture tractors, engines, farm machinery, and construction equipment, with the goal of making India a global manufacturing hub.The Yamuna Expressway Industrial Development Authority (YEIDA) is a significant agency in Uttar Pradesh, India, which oversees the development of areas along the Yamuna Expressway. It was established in 2001 and operates according to the UP Industrial Area Development Act, 1976. The main objective of YEIDA is to support systematic and planned development within a specific area that encompasses the area around the 165 km Yamuna Expressway As per the term sheet, HKC Corporation will hold 26% of the joint venture company, DDTPL, and Dixon Technologies will hold 74%. The number of shares issued to each partner will be determined based on the fair value of DDTPL, as determined by a valuation report.The procedure will be compliant with Rule 21 of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, which provide rules regarding the valuation of shares to ensure a level of transparency and compliance with regulatory requirements.The total investment by both parties will depend on a fixed amount in U.S. dollars exchanged into Indian rupees at the time of completion of the transaction. The joint venture is subject to the signing on definitive agreement and regulatory approvals.Dixon Technologies is India's largest home-grown design and manufacturing firm, with a portfolio that includes consumer electronics, home appliances, lighting equipment, mobile phones, security systems, and display solutions. This collaboration with HKC aims to strengthen India's display technology manufacturing capabilities, and position the company better in global supply chains.
< Page 7 | Page 9 >