Padget Electronics Secures Lenovo Contract for Laptops & Notebooks

Dixon Technologies' subsidiary, Padget Electronics, has secured a contract from Lenovo to produce IT hardware products under the production-linked incentive scheme (PLI) 2.0. Once the definitive agreement is finalized, Padget will be responsible for the manufacturing of notebooks and laptops for Lenovo.

Padget's localization efforts will commence with the production of printed circuit board assemblies (PCBA), aligning with the scheme's schedule in the subsequent years. Having applied under the hybrid category, Padget's participation involves an incremental investment of Rs 250 crore over a six-year period.

Dixon aims to initiate manufacturing for Lenovo in April 2024, starting at its recently inaugurated 2.7 lakh sq. ft. facility. Subsequently, operations will transition to a larger under-construction facility spanning one million sq. ft. Dixon is investing Rs 250 crore in this plant, equipped to produce over one million laptops annually.

The government has granted approval to 27 companies under the revised PLI scheme, offering incentives ranging from one to four percent based on net incremental sales over the base year. Additional benefits are available for companies contributing to the localization of components.

This partnership is anticipated to enhance localization efforts, foster the development of a robust component ecosystem, and generate employment opportunities in India, as highlighted by IT Minister Ashwini Vaishnaw. Lenovo's global expertise is expected to boost India's manufacturing competitiveness. Notably, Padget already manufactures IT hardware for Acer under the previous PLI scheme.

News by Rahul Yelligetti