Dixon Technologies has entered into Joint Venture Agreement with Imagine Marketing for its brand “ boAt,” the company announced on Tuesday.

“The proposed JV Company will undertake design and manufacturing of Wireless Audio Solutions in India and the JV partners will co-invest in the evolving Indian mobile accessory market, thereby paving the way towards “Make in India” in this category,” the company said in an official release.

Pursuant to the said JV agreement, Dixon and Imagine will each own a 50 per cent stake in the proposed JV company.

Further, both the parties will nominate two directors each.

“Unanimous consent of both company and Imagine would be required for issuance of shares or any other change in share capital structure,” Dixon said in a regulatory filing.

“Both the JV Partners i.e. company and Imagine shall have right to equity shares in proportion to their respective shareholding structure,” it said.

JV’s focus

The JV will focus on IP, product design, quality assurance and high-quality manufacturing, and is aimed at paving the way towards the “Make in India” initiative. 

“Imagine’s understanding of the audio industry combined with Dixon’s manufacturing capabilities will facilitate a vibrant platform for electronics accessories design and manufacturing in India,” Dixon said.

Atul B Lall, Vice Chairman and Managing Director, said, “Dixon has been manufacturing wearables for boAt since previous fiscal year and it’s a pleasure that our business relationship is getting cemented with this Joint Venture.”

“Through our partnership, we aim to provide boAt with a faster ability to scale up manufacturing in India with our low-cost structure, high quality and superior execution track record. We strive to develop innovative products with boAt for not only the discerning Indian consumers but also for global markets,” said Lall.

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