Dixon enters into MOU with Rexxam to form Joint Venture

Dixon has entered into Memorandum of Understanding ("MOU") with Rexxam Co., Ltd. ("Rexxam") to form a Joint venture (JV). The said JV Company will undertake manufacturing of Printed Circuit Boards for Air-Conditioners ("PCB") for domestic and international market and also proposes to file necessary applications with Department for Promotion of Industry and Internal Trade (DPIIT) or any other nodal agency to avail benefits under the PLI Scheme of Government of India. Post execution of mutually acceptable agreements by the parties, the JV Company will be 60% owned by Rexxam & 40% owned by Dixon.

Commenting on this occasion, Mr Atul B. Lall, Vice Chairman & Managing Director, Dixon Technologies said "We share a long standing relationship with Rexxam as we have been manufacturing AC-PCBs for their Indian partner for more than 7 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 to Indian customers of Rexxam but shall also be serving International Clients. 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 Indian government's vision of an Atmanirbhar Bharat."

Shares of Dixon Technologies (India) Limited was last trading in BSE at Rs. 4286.25 as compared to the previous close of Rs. 4288.8. The total number of shares traded during the day was 55564 in over 4016 trades.

The stock hit an intraday high of Rs. 4344 and intraday low of 4263. The net turnover during the day was Rs. 239534605.

Source : Equity Bulls

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