NEW DELHI: Padget Electronics, a wholly-owned subsidiary of contract manufacturer company Dixon Technologies, will manufacture laptops and notebooks of Lenovo in the country. The company, in an exchange filing, said it will manufacture the products of Chinese tech-giant under Production Linked Incentive 2.0 Scheme.
“Dixon’s wholly owned subsidiary- Padget Electronics Private Limited has been awarded manufacturing contract by Lenovo to carry out manufacturing of IT Hardware products i.e. laptops and notebooks under Production Linked Incentive 2.0 Scheme, subject to signing of definitive agreement in due course,” said the company in an exchange filing.
Dixon produces consumer durables, lighting and mobile phones, among other things, for companies like Samsung, Phillips, Xiaomi and Godrej. It is among the first companies that received the incentive for electronic manufacturing. The company recently unveiled a new unit in Noida to produce smartphones from Xiaomi. Lenovo is the second Chinese company that gave a contract to Dixon to manufacture its products. According to IDC quarterly data, Lenovo, with 16.2% market share, grabs second spot in India’s PC market in the second quarter of this year.
“Lenovo will bring in the global know-how and processes to manufacture IT hardware products. We are delighted and encouraged by the trust Lenovo has reposed on Dixon for the association and believe that this association will leverage our excellence, superior execution track record and it represents a major milestone in Indian Governments “Make in India” initiative,” said Atul B. Lall, Vice Chairman and Managing Director, Dixon Technologies (India).
The government launched the PLI 2.0 scheme in June 2023 to boost domestic production and incentivise manufacturers to scale up their capabilities. The scheme received an overwhelming response, with 44 companies, including HP, Dell, Lenovo, Thompson, Acer, and Asus applied for it.