Padgett Electronics private limited, a subsidiary of Dixon Technologies, has unveiled a new unit in Noida to produce Xiaomi smartphones. On November 30, Dixon assured that Xiaomi has set up a new facility in Noida with an investment of Rs 256 crore to manufacture smartphones. Padgett Electronics has also received approval from the Government of India.

How did the partnership start?

Dixon Technologies, a homegrown manufacturing company provides design focused solutions in consumer durables, home appliances, lighting, mobile phones. It is known as a leading Indian consumer electronics firm.

Xiaomi, the world-renowned Chinese smartphone company, has formed a partnership with Dixon Technologies to increase production of Xiaomi’s smartphones and other devices in India.

Dixon Technologies announced in May that it proposed to manufacture and export smartphones for Xiaomi India. Following this, Padgett Electronics has already started to work on the production of Xiaomi smartphones in the October–December quarter.

Dixon’s Vice-Chairman, Atul B Lall, described the partnership as a part of the Indian government’s “Make in India” initiative. India’s Prime Minister Modi’s supported the company financially. Dixon’s and it’s subsidiary Padgett Electronics received grants from a central government to promote the constructing of telecommunications and networking products in India. This expansion strategy underscores Xiaomi’s determination to counter its declining market share in India.

Now the new factory in Noida was inaugurated by IT Minister Ashwini Vaishnaw on Thursday. Dixon Technologies Executive Chairman Sunil Vachani termed the investment as “momentous step” towards companies commitment to boosting the local smartphone manufacturing ecosystem in India.

Aims and Objectives

Atul Lall,  Managing Director of Dixon Technologies, emphasized building a strong technology ecosystem. He also said that India should advance in the production of telecommunications and electronics products. “We have a five-year-long relationship with Xiaomi India, and we are excited to begin this new chapter that exemplifies the synergy between our two organizations,” he stated.

Vachani said that currently, the global electronic manufacturing market is around $900 billion. India contributed only 2.3% or about $20 billion. Exports of ICT products from countries like Vietnam are $120 billion. So India has potential as well but every company must manage the industry well.

He also said “we have to make sure we have zero defects.” Dixon exported smartphones worth Rs 1,200 crore last year. This year the company aims to double its exports.  Later, the company is also reported to bring another unit in the next few weeks.

IT minister’s Reaction

IT minister Vaishnaw once told that 99.2 percent of the mobile phones used in the country are manufactured locally. India has an ambitious goal to produce electronic goods worth more than $300 billion by 2025-26 and the manufacturers are encouraged by schemes and subsidies, the Minister said. India is moving beyond China in mobile production.

According to various reports, the facility, operated by Padgett Electronics, is spread across 227,000 square feet. It has an annual production capacity of 25 million units. The government’s Production-Linked Incentive (PLI) scheme has created ideal employment for 500,000 people in the mobile phone industry, said Ashwini Vaishnaw. As many as 5,000 people will be employed in this new unit to manufacture smartphones and feature phones, Vaishnaw said.

Financial Rise

According to an official statement by Atul B Lall, in a short period of just 5–6 years, the company has grown from Rs. 1,500 crore. The number of employees increased from 1,700 to 27,000. “It is going to double in 2 years'” he said with confidence. Shares of Dixon Technologies Ltd. rose 7% to touch a record high of ₹5,865 in trade on December 1.