Dixon Technologies’ subsidiary, Padget Electronics, has been awarded a contract by global tech giant Lenovo. This agreement falls under the recently revised production-linked incentive (PLI) scheme for the IT hardware segment.
The contract, although contingent on the finalisation of a definitive agreement between the two entities, holds the promise of Dixon’s Padget Electronics being entrusted with the manufacturing of notebooks and laptops for Lenovo. The significance of this collaboration is underscored by Lenovo’s standing as the second-largest PC brand, narrowly surpassing Dell in the competitive September quarter, as reported by IDC.
Atul B. Lall, Vice Chairman at Dixon Technologies, articulated the transformative impact of this partnership on India’s manufacturing landscape. Lall expressed confidence in Lenovo’s contribution to localising processes and creating a robust component ecosystem, ultimately translating into increased employment opportunities in the country.
Dixon Technologies, riding high on this development, anticipates commencing manufacturing operations for Lenovo in April 2024. The initial phase is slated to unfold at a recently inaugurated 2.7 lakh square feet facility, with subsequent plans to transition to an expansive 1 million square feet facility currently under construction.
The precise value and quantities outlined in the contract remain undisclosed as both companies work towards finalising these details over the next 3-4 weeks.
