New Delhi. Electronics manufacturing services company Dixon Technology plans to acquire Bharti Group’s Ludhiana-based manufacturing unit to start manufacturing telecom equipment under a production-linked incentive scheme. A senior company official said that the company plans to invest Rs 200 crore under the PLI scheme. The investment also includes the cost of acquiring the manufacturing unit of the Bharti Group.
Dixon Technology Sunil Vachani, executive chairman, said that Dixon has received a PLI license for the telecom sector. We are considering a proposal to set up a JV with Bharti Group. The first manufacturing plant that we will buy is Bharti’s plant in Ludhiana, which was used to make telephones.
The Department of Telecom has selected 31 companies, including Dixon Technology, for the production-linked scheme. These companies will invest Rs 3,345 crore over a period of 4 years. Nokia India, HFCL, Tejas Network, Flextronics, Foxconn, Coral Telecom, VVDN Technology, Frog Cellsat, Sirma, Resolute, GX India, etc. are the companies that have been selected for the PLI scheme.
The Department of Telecom had notified the PLI Scheme for Telecom and Networking Products on February 24, 2021 with a financial allocation of Rs.12195 crore for a period of five years. The scheme is for telecom gear manufacturing in India, which is expected to encourage production of equipment worth Rs 2.44 lakh crore and generate direct and indirect employment opportunities for 42,000 people.
Under the scheme, investors can earn incentives for incremental sales of up to 20 times their committed investment, which will enable them to reach global levels, tap their untapped potential and increase production.