Dixon Technologies arm inks IP licence pact

Dixon Technologies (India) Ltd’s subsidiary and joint venture, Dixon Electro Appliances Private Ltd (DEAPL), has entered into an intellectual property (IP) licence agreement with Aviat Networks (India) Private Ltd, the company said in a regulatory filing on Wednesday, September 30. Under the agreement, Aviat has granted DEAPL a limited licence to use specified intellectual property, including technical know-how, for the manufacture, use, offer for sale and sale of microwave radios. The agreement is part of Dixon’s broader push to expand its manufacturing footprint and build capabilities in higher-value electronics and telecom products. Commenting on the development, Atul B Lall, Vice Chairman and Managing Director of Dixon Technologies, said the collaboration marks a significant milestone in DEAPL’s strategy to expand its manufacturing footprint and strengthens the company’s focus on building domestic capabilities for critical telecom infrastructure. Aviat Networks is a wireless transport solutions provider with more than one million systems sold across 170 countries, according to the company. The agreement comes against the backdrop of increasing investor focus on Dixon’s expansion into components and higher-margin electronics manufacturing. Last week, brokerage firm Nuvama cut its earnings per share (EPS) estimates for Dixon for FY27 by 7%, citing a likely delay in the consolidation of its Vivo joint venture. However, it raised its FY28 EPS estimate by 9% on expectations of a faster scale-up in the components business.