Dixon will hold 51% of the equity share capital and Mega Alliance will hold 49% of the equity share capital in the prospective JV company.

Mega Alliance Holdings is part of Tinno Group. It is one of the largest smartphone original design manufacturer (ODM), with a revenue of approximately $1.9 billion in 2021.

Tinno not only has a set of R&D capacity based on chipset-base, including software and hardware, but also owns top-grade ability among Asian companies to implement industrial styling design and mechanical design. Tinno has established strong partnership with Top Brands in more than 30 countries in South Asia, Latin America and Europe.

The proposed joint venture company will undertake research & development, product designing, supply chain of multiple product categories like smart phones, IT Hardware products, IOT based products and other similar devices that facilitate voice and data communications for domestic and international market.

The manufacturing for smart phones for this JV will be done by Dixon's 100% subsidiary Padget Electronics which is a beneficiary under the mobile production linked scheme (PLI) scheme of the Government.

Atul B. Lall, vice chairman & managing director, stated: "Tinno is a one of the largest ODM solution provider in Smartphones & IOT segment and therefore, we highly anticipate that this venture will not only give a boost to design led manufacturing in India by bringing in the skills and technology but will also further strengthen the company's market leadership in mobile vertical."

Dixon Technologies (India) transformed from being a manufacturer of electronic goods to leading multi-product corporation with widespread activities. The company is primarily engaged in the manufacturing of electronics as its core business activity.

The company's consolidated net profit rose 11.9% to Rs 51.91 crore despite of net sales declined 21.8% to Rs 2,404.72 crore in Q3 FY23 over Q3 FY22.

The scrip tumbled 19.19% to settle at Rs 2,718.85 on Friday, 27 January 2023.