In early trade on September 28, shares of Dixon Technologies India Limited surged nearly 2 percent, reaching a 52-week high of Rs 5,378. The boost came after one of its subsidiaries secured a deal with Xiaomi to manufacture smartphones and related products.
Padget Electronics Private Limited, a wholly-owned subsidiary of Dixon Technologies India Limited, announced its agreement with Xiaomi to produce smartphones and associated items at Padget’s manufacturing facility in Noida, Uttar Pradesh.
Dixon Technologies has garnered approval to receive incentives under the Central government’s Production-Linked Incentive (PLI) scheme for mobile manufacturing. The company currently manufactures phones for brands like Reliance Jio, Motorola, and Nokia. Meanwhile, Xiaomi has been facing increased regulatory scrutiny in the Indian market.
Earlier this year, Xiaomi had also engaged India’s Optiemus Electronics Ltd to manufacture its Bluetooth neckband earphones, a product that was previously imported from China.
Atul B Lall, Vice Chairman, and Managing Director at Dixon Technologies India, expressed enthusiasm about the partnership, stating, “It gives us immense pleasure to partner with Xiaomi, which is an iconic brand. We are delighted and encouraged by the trust they have placed in Dixon for this association. We believe this collaboration will leverage our excellence, superior execution track record, and Xiaomi’s expertise and leadership in the Indian business ecosystem. It represents a major milestone in the Indian Government’s ‘Make in India’ initiative.”
Dixon Technologies India views Xiaomi as a suitable partner that aligns with its core principles of quality, engineering expertise, and a dedication to customer satisfaction, as per the company’s release.
Lall further remarked, “We are confident this is just the beginning of a long and fruitful relationship, and there is immense potential to further build on shared capabilities to deliver sustainable growth.”
The Indian government has been actively encouraging smartphone manufacturers to engage more local players in their manufacturing processes. This latest development follows a July announcement wherein both parties met with the Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, to explore manufacturing and exports.
Chandrasekhar shared his expectations on social media, stating, “Leadership of @XiaomiIndia met me today – have set out to them our expectations of them increasing exports, deepening supply chain ecosystem and value addition in India, and all products to be data privacy compliant.”