In a significant boost to India’s domestic manufacturing sector, Dixon Technologies has secured a major contract from American tech giant HP to produce laptops and desktops. This move
In a significant boost to India’s domestic manufacturing sector, Dixon Technologies has secured a major contract from American tech giant HP to produce laptops and desktops. This move aligns with the Indian government’s ongoing efforts to enhance local production through the ‘Make in India’ initiative and capitalize on the Production Linked Incentive (PLI) scheme for IT hardware.
Dixon Technologies will undertake this manufacturing venture at its newly established facility in Oragadam, Tamil Nadu. The state-of-the-art plant spans 300,000 square feet and is expected to have an annual production capacity of 2 million units. This development is poised to create approximately 1,500 jobs, further bolstering the local economy and supporting HP’s commitment to expanding its footprint in India.
The announcement comes as the September 30 deadline approaches for the expiration of the import authorization regime for IT hardware products. This timing is strategic, positioning HP to benefit from the government’s incentives while transitioning more of its production to India. Dixon Technologies is projected to invest around ₹250 crore (approximately $30 million) in the new facility, enhancing its capabilities and infrastructure.
Under the PLI 2.0 scheme, the Indian government aims to boost domestic manufacturing by providing financial incentives to companies that increase their production levels in India. HP’s collaboration with Dixon Technologies will not only support this scheme but also contribute to the company’s broader goal of increasing its local sourcing and manufacturing capabilities. Ipsita Dasgupta, HP India’s Managing Director, has expressed strong support for the PLI scheme, highlighting its role in developing a robust manufacturing ecosystem in India.
Dasgupta has emphasized HP’s commitment to leveraging the PLI scheme as a bridge for sectoral development. She anticipates significant growth in the computer market over the next five years and believes that the scheme will accelerate the development of the local tech industry.
Dixon Technologies has previously collaborated with international brands, including Acer, for computer manufacturing at its Noida facility. The new partnership with HP signifies a substantial expansion of Dixon’s role in the IT hardware sector, marking a notable step in the company’s growth trajectory.
As production is set to commence by April next year, this partnership signals a promising future for India’s tech manufacturing sector. It represents a tangible outcome of the ‘Make in India’ initiative, showcasing the potential for homegrown companies to meet global demand while benefiting from local government support.
HP’s decision to partner with Dixon Technologies for the manufacturing of PCs and laptops underscores a growing trend of international companies investing in India’s tech infrastructure. This development is not only expected to enhance HP’s operational efficiencies but also contribute significantly to the country’s economic growth and technological advancement.
