Dixon Technologies (India) Limited is establishing a new wholly-owned subsidiary, Adivistar Electronics India Private Limited. This move aims to bolster its Original Equipment Manufacturing (OEM) capabilities, particularly for electronic devices including smartphones. Dixon will hold a 51% equity stake in the new entity, which is capitalized at INR 10 per share, with a total initial subscription cost of INR 2,55,00,000. Approval for this strategic expansion has been secured.
Dixon Technologies Expands OEM Operations with New Subsidiary
Dixon Technologies (India) Limited has announced the incorporation of a new subsidiary named Adivistar Electronics India Private Limited. This strategic initiative is part of Dixon’s ongoing efforts to enhance its market position and expand its operational capabilities within the electronics manufacturing sector.
Focus on Electronic Device Manufacturing
The newly formed subsidiary will concentrate on the Original Equipment Manufacturing (OEM) business, specifically targeting the production of electronic devices. This includes a significant focus on the manufacturing of smartphones, aligning with the growing demand in the consumer electronics market. The incorporation signifies Dixon’s commitment to strengthening its OEM vertical.
Equity Structure and Investment
Dixon Technologies will hold a controlling 51% equity stake in Adivistar Electronics India Private Limited. This translates to 25,50,000 equity shares, each with a face value of INR 10. The total cost for this initial subscription amounts to INR 2,55,00,000 (Rupees Two Crores Fifty-Five Lakhs Only). The country of incorporation for the new entity is India.
Regulatory Approvals Secured
The incorporation process has received the necessary approvals. Specifically, approval has been granted by the Ministry of Electronics and Information Technology (MeitY), Government of India, under Press Note 3 (2020 Series). This is read in conjunction with the Department for Promotion of Industry and Internal Trade guidelines and the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. These approvals pave the way for the successful establishment and operation of the new subsidiary.
Source: BSE
