Dixon Technologies (India) Limited, Gemtek Technology Co., Ltd., and Dixon Electroconnect Private Limited have entered into a binding term sheet to establish a joint venture for manufacturing optical transceivers and telecom products in India. The agreement, signed on June 9, 2026, outlines a structure where Dixon will hold 60% of the paid-up share capital of Dixon Electroconnect, while Gemtek will hold the remaining 40%. This partnership marks Dixon's entry into the data centre, telecom, and optical connectivity ecosystem, leveraging Gemtek's expertise in high-speed optical modules and networking technologies.

The consummation of the proposed transaction is subject to the signing of definitive agreements, completion of customary conditions precedent, and receipt of applicable statutory and regulatory approvals. As of the date of the binding term sheet, Dixon Electroconnect is a wholly owned subsidiary of Dixon and is a beneficiary under the Electronics Components Manufacturing Scheme (ECMS).

Joint Venture Structure

The joint venture aims to manufacture and supply Optical Transceiver - SFP (Small Form-factor Pluggable) and BOSA (Bidirectional Optical Subassembly), along with other mutually agreed telecom products. The ownership structure is detailed below:

Strategic Objectives

Mr. Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies (India) Limited, stated that the partnership combines Dixon's large-scale manufacturing capabilities with Gemtek's global expertise. The joint venture will address growing demand driven by AI, cloud and edge computing, hyperscale data centres, and next-generation optical communication solutions. The initiative aligns with the Government of India's "Make In India" program and aims to strengthen indigenous electronics manufacturing.

Mr. Howard Chen, Chairman of Gemtek Technology Co., Ltd., emphasized that the partnership represents a significant step in Gemtek's global footprint expansion. The company aims to build a competitive supply chain to meet the evolving demands of high-speed network and data center infrastructure in the AI era.

Dixon Technologies (India) Limited conducted meetings with institutional investors SBI Funds Management Pvt. Ltd. and Motilal Oswal Asset Management Company Limited on June 9, 2026. The company confirmed that no unpublished price sensitive information was shared during these interactions, which were held pursuant to Regulations 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The meetings were organized as one-on-one sessions and took place in-person. The first meeting with SBI Funds Management Pvt. Ltd. was scheduled at 10:00 A.M., followed by a session with Motilal Oswal Asset Management Company Limited at 11:00 A.M. on the same day.

Meeting Details

The disclosure was submitted to the stock exchanges to inform stakeholders about the investor engagement activities. No presentations were made during the aforesaid meetings.