Dixon Inks Pacts with Xiaomi India To Produce Smartphones By CIOTechOutlook Team

Dixon Inks Pacts with Xiaomi India To Produce Smartphones

CIOTechOutlook Team | Thursday, 28 September 2023, 02:41 IST

Padget Electronics, a fully owned subsidiary of Dixon Technologies, announced that it has signed an agreement with Xiaomi India to manufacture smartphones and other related goods for the Chinese brand.

“We are delighted and encouraged by the trust they have reposed on Dixon for the association and believe that this association will leverage our excellence, superior execution track record and Xiaomi’s expertise and leadership in India business ecosystem and it represents a major milestone in Indian government’s “Make in India” initiative,” Atul B. Lall, vice chairman and managing director, said in a statement to the stock exchanges.

The manufacturing services provider said it will be making Xiaomi-branded smartphones at its facility in Noida, Uttar Pradesh. The development comes after an earlier announcement about exploring manufacturing and exports in May after the two parties met with minister of state for electronics and information technology, Rajeev Chandrasekhar, at his office, as per economic times.

“We see them as an ideal strategic partner who shares our core values: quality, engineering, prowess and customer satisfaction. We are confident this is just the beginning of a long and prolific relationship and there is immense potential to further build on shared capabilities to deliver sustainable growth,” Lall added in the statement.

Dixon shares reached a 52-week high in intraday trade, before finishing 3.7% higher at Rs 5824.20. The news came after market close. To be clear, this is not the first time Dixon has collaborated with Xiaomi to develop goods. Dixon has been producing televisions for the former smartphone market leader since 2018. The firm also produces cellphones for Motorola and Samsung.

Dixon's subsidiary is one of the few Indian firms that have won incentives under the smartphone production-linked incentive plan.