Dixon signs JV pact with Rexxam to manufacture AC PCB

News: Dixon has signed a joint venture (JV) agreement with Japan’s Rexxam to manufacture AC PCBs. In the said JV, Dixon will hold 40% equity stake while Rexxam will hold rest 60% stake.

Views: Dixon and Rexxam have been business partners for the last seven years wherein Dixon is supplying AC PCBs to Rexxam. Dixon has clocked revenue of Rs.120 crore in FY21 from this business. In the said JV, Dixon will continue manufacturing AC PCBs (as Dixon is one of the beneficiaries of white goods PLI license) for Rexxam’s global clients. The company sees revenue potential of Rs.400-500 crore from the AC PCB business in the near term.

Impact: Neutral