Dixon Technologies, a local contract manufacturer, has been awarded a massive manufacturing order by American computer giant HP, which is a boost to the government’s ambitions to manufacture laptops in India through domestic enterprises.
Dixon’s Oragadam factory, outside of Chennai, will produce the laptops and desktops that are the subject of the deal, according to chairman Sunil Vachani. Vachani stated, “We are planning to start production by April next year,” and added that the business would produce them under the government’s IT hardware production-linked incentive (PLI) scheme.
“The order from HP is a prestigious one and will help strengthen the government’s Make in India initiative and Atmanirbhar Bharat programme,” he said.
The amount of computers HP plans to manufacture in India as opposed to importing is still unknown. Dixon is probably going to contribute about Rs 250 crore to the project, though Vachani did not immediately confirm. Dixon now produces PCs for Acer, but these are built at its Noida plant.
Through this relationship, HP is able to further strengthen its localization efforts and commitment to India. The company’s MD for India, Ipsita Dasgupta, has previously stated that they plan to increase their manufacturing and sourcing from India since she believes the PC market would treble in the next five years.
“I believe the PLI scheme has been a great enabler. We are participating in it because it creates a bridge for the development of the sector from a manufacturing perspective. We are quite bullish that the ecosystem will develop over the next few years, and that too pretty quickly. In the intervening period, the PLI is a solid programme. I think the starting point has been a very measured and strong initiative by the government,” she said.
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