The government will reportedly scrutinise the recent agreements of the homegrown electronics manufacturer Dixon Technologies with Chinese electronics companies Chongqing Yuhai and Kunshan Q Technology.
“Due process will be followed when their application comes under Press Note 3 rules,” an official was quoted as saying to PTI.
As per Press Note 3 rules, it is mandatory to obtain government approval for foreign investments from countries sharing a land border with India, including China, Afghanistan, Pakistan, Nepal, Bhutan, Bangladesh and Myanmar.
Only two days ago, reports surfaced that Dixon signed agreements with the two Chinese electronics component companies Chongqing Yuhai Precision Manufacturing and the Indian arm of Kunshan Q Technology, for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others.
Inc42 has reached out to Dixon for comments on the development. The story will be updated based on the response.
The agency said that Dixon looks to set up a joint venture for the business of manufacturing and supply of precision components for laptops, mobile phones, IoT, automotive and any other products, via the partnership with Chongqing Yuhai, where it is likely to hold a 74 % stake in the JV, and the rest will be owned by Chongqing.
Meanwhile, Dixon also signed a binding term sheet with Kunshan Q Tech Microelectronics India (also known as Q Tech India) and its shareholders, Q Technology Singapore and Kunshan Q Technology International, for the proposed acquisition of an aggregate of 51 % shareholding in Q Tech India.
Over a month ago, Dixon also sought partnership with China’s HKC for its display module manufacturing unit and awaited the Indian government’s approval.
(The story will be updated soon)
The post Govt To Scrutinise Dixon’s JV Firms With Chinese Companies: Report appeared first on Inc42 Media.
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