October 8: Dixon Technologies (India) Limited has signed a joint venture agreement with Taiwan-based Gemtek Technology Co., Ltd. to manufacture optical transceivers and other telecom products in India, as the electronics manufacturer moves into the data centre, telecom and optical-connectivity ecosystem.
The agreement was executed on October 7 through Dixon Electroconnect Private Limited, which is currently a wholly owned subsidiary of Dixon Technologies. The transaction remains subject to the completion of customary conditions precedent.
Under the proposed arrangement, Dixon Technologies will hold a 60% stake in Dixon Electroconnect, while Gemtek will hold the remaining 40% through the subscription of fresh equity shares in the joint venture company. Neither Dixon nor Gemtek will acquire a stake in the other.
The joint venture will manufacture and supply Optical Transceiver – SFP (Small form-factor pluggable) and BOSA (Bidirectional optical subassembly) products in India. The partners may also add other telecom products by mutual agreement.
According to Dixon’s regulatory filing, the proposed transaction is expected to combine its large-scale manufacturing capabilities with Gemtek’s expertise in high-speed optical modules, telecom infrastructure and networking technologies.
The company said the joint venture 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.
The filing does not disclose the investment amount. Dixon and Gemtek will invest in the joint venture through equity subscriptions, with the number of shares to be subscribed at closing based on valuation reports and applicable laws.
Under the governance structure agreed between the two companies, Dixon will have the right to nominate three directors to the joint venture’s board, while Gemtek will nominate two. Dixon will also have the right to nominate the chairman.
The proposed transaction is expected to be completed by February 3, 2027, subject to the completion of conditions precedent.
Dixon Electroconnect had not commenced business operations as of March 31, 2026, and reported nil turnover. Its authorised and paid-up share capital stood at ₹1 lakh, according to the filing.
