Dixon Technologies (India) Limited has taken a significant step towards expanding its electronics and display business in India by forming a joint venture (JV) with HKC Overseas Limited, an affiliate of HKC Corporation Limited. The JV is aimed at development, manufacturing, and distribution of Liquid Crystal Modules (LCM), thin film transistor (TFT) liquid crystal display modules, and assembly of end products like smartphones, TVs, monitors, and automotive displays for the Indian market.

The company executed a Share Subscription and Shareholders’ Agreement (SSHA) on August 16, 2025, with HKC and its wholly owned subsidiary, Dixon Display Technologies Private Limited (DDTPL). Under the agreement, Dixon Technologies will subscribe for 74% of DDTPL’s paid-up share capital, while HKC will hold 26%, creating a balanced partnership to leverage technology and market expertise. The agreement also details the management structure, reserved matters, and rights in future funding rounds to ensure smooth governance.

The joint venture is expected to strengthen Dixon’s footprint in India’s rapidly growing display and electronics sector, providing access to advanced LCD and TFT technologies. The SSHA provides Dixon the right to nominate three directors on DDTPL’s board, while HKC can nominate one director. Additionally, the agreement includes pre-emptive rights, tag-along rights, non-compete clauses, dispute resolution mechanisms, and share transfer restrictions to protect both parties’ interests.

DDTPL, being a wholly owned subsidiary of Dixon Technologies, is a related party transaction, executed on an arm’s length basis. Key common directors include Mr. Atul Behari Lall and Mr. Saurabh Gupta, ensuring alignment between the parent company and subsidiary. HKC is not a related party and brings in international expertise and investment, amounting to the INR equivalent of USD 10.998 million, while Dixon’s investment totals USD 31.30 million.

The turnover of DDTPL as of March 31, 2025, was Nil, with a net worth of INR (12.82) lakh, indicating that the JV is focused on future growth and strategic expansion rather than current revenue. The joint venture is in line with Dixon Technologies’ strategy to achieve long-term goals in display manufacturing, enhance technological capabilities, and strengthen market position in India.

The transaction is subject to regulatory approvals under Press Note 3 of 2020, issued by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, and other applicable statutory approvals. The expected completion timeline is by December 2026, after satisfying all conditions precedent.

This partnership will allow Dixon Technologies to leverage HKC’s technological expertise in LCD and TFT displays, while providing Dixon with local market knowledge, distribution networks, and assembly capabilities. The JV will also enable the production of HKC branded end products in India, boosting the availability of high-quality displays and electronics in the domestic market.

The joint venture represents a strategic move in India’s electronics manufacturing sector, supporting the government’s vision of self-reliant electronics production and Make in India initiatives. By combining Dixon Technologies’ established local presence with HKC’s technical know-how, the JV is expected to deliver high-quality products, cost efficiencies, and accelerated time-to-market for display solutions across India.

In summary, the Dixon-HKC joint venture marks a critical milestone for Dixon Technologies as it enters the LCD and TFT display segment in India, enhancing its technological portfolio and market reach. With regulatory approvals underway and a clear governance framework, the JV is poised to become a key player in India’s growing display industry, creating value for shareholders, customers, and stakeholders in the long term.

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