JV Agreement executed: 60:40 joint venture for optical transceivers and BOSA manufacturing

Joint Venture Agreement executed with Gemtek Technology and Dixon Electroconnect (wholly owned subsidiary).

Wed 7 Oct 2026

JV Shareholding

60% by the Company, 40% by Gemtek

JV Business

Optical Transceiver - SFP and BOSA manufacturing in India

Target Completion

3rd February, 2027

What has been announced

• A Joint Venture Agreement was executed on 7th October, 2026 between Dixon Technologies (India) Limited, Dixon Electroconnect Private Limited (a wholly owned subsidiary of the Company as on the date) and Gemtek Technology Co., Ltd.
• This follows a binding term sheet entered into by the parties on June 9, 2026, which was intimated earlier, and is in continuation of that intimation.
• The transactions contemplated under the JV Agreement remain subject to completion of customary conditions precedent, and are referred to as the Proposed Transaction.

What the joint venture will do

• The JV Company, Dixon Electroconnect, will carry on the business of manufacturing and supply of Optical Transceiver - SFP (Small Form-Factor Pluggable) and BOSA (Bidirectional Optical Subassembly) or other telecom products as may be mutually agreed by the parties from time to time in India.
• The area of the arrangement is domestic.

How the shareholding will look

• On completion of the Proposed Transaction, the share capital of Dixon Electroconnect will be held by the Company and Gemtek in the proportion of 60% and 40%, respectively.
• The joint venture will be effected through subscription of fresh equity shares of the JV Company by both the Company and Gemtek, such that their shareholding becomes 60% and 40% respectively. The number of equity shares to be subscribed on closing will be based on valuation reports.
• Neither the Company nor Gemtek will acquire any stake in each other.

Board and governance

• The Company has the right to nominate 3 directors on the board of the JV Company, and Gemtek has the right to nominate 2 directors.
• The Company has the right to nominate the Chairman of the board of the JV Company.
• Both the Company and Gemtek have information rights regarding the affairs of the JV Company.
• The JV Agreement also includes customary or commercially agreed conditions on reserved matters requiring shareholder approval, exit rights, representations and warranties, indemnities and dispute resolution.

Size of the JV entity

• As on March 31, 2026, the turnover of the JV Company was NIL, as the JV Company has not commenced business operations.
• The authorised share capital and paid up share capital of the JV Company is INR 1,00,000.

Related party angle

• The proposed subscription by the Company to shares of the JV Company may constitute a related party transaction because Dixon Electroconnect is a wholly owned subsidiary of the Company as on the date hereof.
• The transaction will be undertaken on an arm's length basis in compliance with applicable law, and the Company will obtain valuation report(s), if any, as may be required under applicable law.
• Except to the extent of the share capital to be held by the Company in Dixon Electroconnect, the promoter, promoter group and group companies will have no interest in Dixon Electroconnect. The Company and Gemtek are not related parties as on date.

Why the company says it is doing this

• The Proposed Transaction is expected to enable the Company to enter the data centre, telecom and optical-connectivity ecosystem by combining the Company's large-scale manufacturing capabilities with Gemtek's expertise in high-speed optical modules, telecom infrastructure and networking technologies.
• The JV Company is expected to address demand arising from artificial intelligence, cloud and edge computing, hyperscale data centres, high-speed networking and next-generation optical communication solutions.

Timeline and next steps

• The Proposed Transaction is expected to be completed by 3rd February, 2027, subject to completion of conditions precedent.
• The Company will make the requisite disclosure upon the occurrence of any event where the arrangement is called off for any reason.

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