Dixon Technologies (74%) and Longcheer Intelligence (26%) to form Dixtel Infocomm
Khaitan & Co jointly advised Dixon Technologies (India) Limited and Longcheer Intelligence Pte. Ltd. in obtaining government approval under Press Note 3 (PN 3) of 2020 via the Ministry of Electronics and Information Technology (MEITY).
The joint venture structure allocates 74% ownership to Dixon and 26% to Longcheer.
Khaitan’s advisory team—Partner Atul Pandey, Partner Hirak Mukher‑j‑y, Principal Associate Varun Yadav, and Senior Associate Shruti Gupta—played a central role in clearing the regulatory pathway for this transformational deal.
Deal Significance
Joint Entity – Dixtel Infocomm: Once definitive agreements are signed, the JV is expected to operate under the name Dixtel Infocomm, focusing on manufacturing smartphones, tablets, TWS earbuds, smartwatches, AI‑PCs, automotive electronics, and healthcare devices
Original Design Manufacturing (ODM) Capabilities: The JV will introduce ODM design and production expertise in India, a key step towards localisation and reducing dependence on imports.
Strengthening the Ecosystem: By localising non‑semiconductor sub‑components and expanding the electronic components supply chain, the JV supports India’s Electronics Components Manufacturing Scheme (ECMS) and broader “Make in India” goals
Market & Policy Impact
Pivot on Chinese FDI: The approval signals a potential softening of earlier restrictions on Chinese investments from firms sharing land borders, following Press Note 3 norms introduced in 2020 due to border‑related sensitivities
Industry Momentum: Dixon’s government clearance is encouraging peers—such as Epack Durable, PG Electroplast, Karbonn Mobile—to explore similar JVs with Chinese partners, creating momentum across the electronics manufacturing sector.
Supply Chain Resilience: India imports 70–75% of electronic components from China/Hong Kong. This JV aids in in‑country manufacturing of higher value parts and bolsters supply resilience.
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Disclaimer
This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult professionals before making decisions
