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Friday, September 22, 2023

Dixon Technologies in Talks with HP and Lenovo for Localized Production under PLI Scheme

The company is ready to invest Rs 250 crore over 2-3 years

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Aditya Saikrishna
Aditya Saikrishna
I am 21 years old and an avid Motorsports enthusiast.

INDIA: Dixon Technologies, a prominent player in the electronics manufacturing industry, is currently engaged in discussions with global IT giants HP and Lenovo to facilitate the domestic production of their products. This move is in line with the recently revised Production-Linked Incentive (PLI) scheme aimed at bolstering the indigenous manufacturing of IT hardware.

Sources reveal that Dixon Technologies is poised to make a substantial investment of Rs 250 crore over the next two to three years. This capital infusion will be directed towards the establishment of a state-of-the-art production facility and comprehensive localization efforts. Negotiations with HP and Lenovo are currently in their initial phases, with Dixon slated to assist these industry giants in achieving their incremental production targets under the revamped PLI scheme.

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Anticipated to kickstart within the next three to four months, the upcoming plant is projected to boast an impressive production capacity of one million notebooks annually. Additionally, it will feature dedicated lines for the production of printed circuit boards (PCBs), aligning with the localization requirements stipulated by the PLI scheme.

The Indian government’s resolute push to promote local manufacturing in the electronics sector has been exemplified through the introduction of the Rs 17,000 crore PLI scheme. The initiative has garnered widespread acclaim, attracting nearly 40 applications from both domestic and global companies keen on participating in this transformative endeavour.

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Under this scheme, industry stalwarts like HP, Dell, Lenovo, Thompson, Acer, and Asus are set to embark on the domestic production of laptops, tablets, and personal computers (PCs). Concurrently, HPE, VVDN, Netweb, and Lenovo are slated to spearhead server manufacturing operations within the country by the ensuing year.

With close to 29 companies poised to commence production on Indian soil by April 2024 and an additional three companies slated to join the fray by 2025, Telecom Minister Ashwini Vaishnaw expressed his satisfaction with the enthusiastic industry response, surpassing initial expectations. Dixon Technologies’ substantial investment underscores the burgeoning potential and attractiveness of the PLI scheme in driving robust growth within India’s electronics manufacturing landscape.

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Also Read: HP OMEN 17 Unleashes Gaming Power with Intel Core i9, NVIDIA RTX 4080


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