Dixon NSE Technologies, a contract manufacturer in electronic goods, on Tuesday announced a joint venture with Japan-based Rexxam Co for manufacturing Printed Circuit Boards (PCBs) for Air-Conditioners for the domestic and international market. It has entered into a Memorandum of Understanding (MOU) with Rexxam to this effect and proposes to file necessary applications with the government to avail benefits under the Production-Linked incentive (PLI) Scheme.
"Post execution of mutually acceptable agreements by the parties, the JV company will be 60 per cent owned by Rexxam & 40 per cent owned by Dixon," said a statement from Dixon Technologies.
Commenting over the development, Dixon Technologies Vice Chairman & Managing Director Atul B Lall said the company shares a long-standing relationship with Rexxam as it was manufacturing AC-PCBs for their Indian partner for more than seven years.
"We are confident that our relationship with Rexxam will further deepen its roots with this strategic partnership. Under this JV, we will not only be serving Indian customers of Rexxam but shall also be serving International Clients," he said.
Lall further added: "We highly anticipate that a significant part of revenue under the JV company will come from exports. We are extremely confident that this venture will be well-positioned and shall be a contributor in strengthening India's electronics manufacturing sector as well as towards the Indian government's vision of an Atmanirbhar Bharat."
Rexxam Co is a Japanese Corporation established in 1960. The company deals in the development, design, manufacturing and marketing of - electronic application products, peripheral devices of semiconductor production equipment, automotive components, precision machining products.
Earlier in July, Dixon had informed that it has received approval for IT hardware manufacturing under the government's PLI scheme.