Dixon 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.
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.
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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.
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