HKC and Dixon to jointly build LCD module plant in India, with investment of 4 billion rupees awaiting government approval

Indian manufacturer Dixon Technologies recently revealed that it has submitted an application for approval to the Indian government for cooperation with Chinese company HKC. According to the letter of intent signed by the two parties, the joint venture will invest about 4 billion rupees (about 340 million yuan) to build a display module factory in Noida, India, mainly engaged in the production of liquid crystal modules (LCM) and thin-film transistor liquid crystal display modules (TFT-LCD modules), and assemble terminal products such as smartphones, TVs, monitors and automotive displays.

Sunil Vachani, executive chairman of Dixon Technologies, said in an interview with the Press Trust of India (PTI): "HKC is a well-known company in the display field. We plan to cooperate with them to supply modules for mobile phones, laptops and TVs. At the same time, we are also considering acquiring a minority stake in it." It is reported that Vachani shared this information as a member of the business delegation accompanying Indian Minister of Commerce and Industry Piyush Goyal.

According to India's 2020 regulations, foreign investment from countries bordering India must be approved in advance, including investment in any field. Since China is one of the countries bordering India, Dixon Technologies' cooperation with HKC must strictly follow the approval process.

In addition to the cooperation with HKC, Dixon Technologies is also actively promoting the construction of intelligent factories. Vachani revealed that the company has reached a cooperation with the French Dassault Group to launch an intelligent manufacturing plan to fully promote the intelligent construction of all factories. Dixon plans to certify its subsidiaries as "lighthouse factories" - such factories are in a leading position in the world in the adoption and integration of advanced technologies and are closely related to Industry 4.0 technologies.

In terms of investment planning, Sunil Vachani said: "In terms of component production, relying on the PLI plan (production-linked incentive plan), we will invest more than 12 billion rupees, and in addition, an additional investment of 4 billion rupees will be made in the display module field." Dixon will build a new factory in Noida, Uttar Pradesh, which is a greenfield investment project.

It is worth mentioning that Dixon Technologies has established a joint venture with Vivo India and plans to build an OEM (original equipment manufacturer) factory in India, focusing on the production of smartphones and other electronic devices. Dixon holds a 51% majority stake in the joint venture, while Vivo's Indian business holds a 49% stake. Vachani said: "Our current annual production capacity for mobile phones is nearly 60 million to 70 million units. Combined with the production capacity of cooperation with Vivo, we are expected to achieve an annual production capacity of 100 million units next year."