Aviat Networks signs India manufacturing deal with Dixon

Aviat Networks, Inc. (NASDAQ: AVNW) has entered into a license-to-manufacture agreement with Dixon Electro Appliances Private Ltd. for select products in Aviat's WTM 4000 product family in India, according to a company statement.

Under the agreement, Dixon will manufacture and sell approved products to select Indian telecommunications operators. Aviat retains its intellectual property and continues to provide software and services under the arrangement.

The structure differs from a traditional contract manufacturing model in that it allows local production and sale through a local supply chain, which the company says reduces import delays and international shipping complexity for Indian customers.

Aviat estimates Indian microwave market demand at approximately 250,000 links over the next four years. The company said the license-to-manufacture structure is expected to create a more capital-efficient growth profile for shareholders.

"India represents one of the largest growth opportunities in the global microwave market," said Pete Smith, President and Chief Executive Officer of Aviat Networks. "This model allows Aviat to serve this growing market while focusing our resources on innovation, software, services and customer relationships."

Aviat already operates research and development, repair and return, and logistics and deployment services in India. The company is headquartered in Austin, Texas.

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