Noida, Oct 7 (APAC Media): Dixon Technologies (India) Ltd on Wednesday said it has entered into a joint venture agreement with Taiwan-based Gemtek Technology Co. Ltd and its wholly owned subsidiary Dixon Electroconnect Pvt Ltd to manufacture and supply optical connectivity products in India.
The agreement was signed on October 7, 2026, following a binding term sheet executed by the parties on June 9, the company said in a regulatory filing.
Under the proposed arrangement, Dixon Electroconnect will manufacture and supply optical transceiver-SFP (small form-factor pluggable), BOSA (bidirectional optical subassembly) and other telecom products that may be mutually agreed upon by the partners.
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The joint venture will be structured through the issuance of fresh equity shares by Dixon Electroconnect. Upon completion of the transaction, Dixon Technologies will hold a 60 per cent stake in the joint venture, while Gemtek will own the remaining 40 per cent.
“The joint venture will be engaged in the business of manufacturing and supply of optical transceiver-SFP and BOSA or other telecom products as may be mutually agreed by the parties from time to time in India,” Dixon said.
The company clarified that neither Dixon Technologies nor Gemtek will acquire any stake in the other through the transaction.
Dixon will have the right to nominate three directors to the joint venture’s board, while Gemtek will nominate two directors. Dixon will also have the right to nominate the chairman of the board.
The agreement also provides for information rights for both partners, along with customary provisions covering reserved matters, exit rights, representations and warranties, indemnities and dispute resolution.
The transaction is expected to be completed by February 3, 2027, subject to the fulfilment of customary conditions precedent.
Dixon said the subscription by the company to shares of Dixon Electroconnect may constitute a related-party transaction since the latter is currently its wholly owned subsidiary. The transaction will be carried out on an arm’s-length basis and in compliance with applicable laws, with valuation reports obtained wherever required.
Dixon Electroconnect had no turnover as of March 31, 2026, as it had not commenced operations. Its authorised and paid-up share capital currently stands at Rs 1 lakh.
The company said the partnership is aimed at expanding its presence in the data centre, telecom and optical-connectivity ecosystem by combining Dixon’s large-scale manufacturing capabilities with Gemtek’s expertise in high-speed optical modules, telecom infrastructure and networking technologies.
The joint venture is expected to tap demand from artificial intelligence, cloud and edge computing, hyperscale data centres, high-speed networking and next-generation optical communication solutions.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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