Dixon Technologies (India) Limited has informed the Exchange about Diversification/Disinvestment
DIXON · price
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Dixon Technologies has signed a definitive agreement to form a joint venture with HKC Overseas Limited (affiliate of Chinese display major HKC Corporation) for manufacturing and distribution of liquid crystal modules, thin-film-transistor LCD modules, and their sale in India. The JV will operate through Dixon Display Technologies Private Limited (DDTPL), currently a wholly owned subsidiary of Dixon. Post-transaction, Dixon will hold 74% and HKC will hold 26%, with Dixon's investment pegged at USD 31.30 million and HKC's at USD 10.998 million (in two tranches each). The deal is expected to close by December 2026, subject to government approvals including under Press Note 3 of 2020. DDTPL currently has zero revenue and a small negative net worth of around INR 12.82 lakh, making this a new business vertical rather than a handoff of an existing profitable unit.
This is a positive, growth-oriented move that gives Dixon access to HKC's display technology and a foreign partner's capital while keeping majority control. For shareholders, it signals expansion into the higher-value display module segment beyond Dixon's existing assembly business, though execution and regulatory timelines stretch into late 2026. The 74% retention means consolidated earnings impact remains largely with Dixon once the JV starts contributing revenue.