Dixon’s Padget Electronics to produce laptops for Lenovo under PLI 2.0

Dixon Technologies has informed the stock exchanges on December 11 that its wholly-owned subsidiary Padget Electronics has been awarded a contract by Lenovo to manufacture laptops and notebooks, under the Production-Linked Incentive (PLI) 2.0 Scheme.

“…we wish to inform that Padget Electronics Private Limited, Wholly Owned Subsidiary of Dixon Technologies (India) Limited, has been awarded manufacturing contract by Lenovo for manufacturing of IT Hardware products i.e. Laptops and Notebooks under Production Linked Incentive 2.0 Scheme (“PLI”), subject to signing of definitive agreement in due course,” Dixon said in its stock exchange filing.

Atul B. Lall, Vice Chairman & Managing Director of Dixon Technologies (India) Limited, expressed great satisfaction about the collaboration with the renowned brand Lenovo for the manufacturing of IT Hardware products under the IT hardware PLI 2.0 Scheme. This partnership is expected to significantly boost India’s manufacturing competitiveness, he said.

Commenting on this association, Atul B. Lall said, “Lenovo will bring in the global know-how and processes to manufacture IT hardware products. We are delighted and encouraged by the trust Lenovo has reposed on Dixon for the association and believe that this association will leverage our excellence, superior execution track record and it represents a major milestone in Indian Governments “Make in India” initiative. Lenovo which is a Global leading player in their field are known for their affordable yet technologically advanced products. We are confident that this partnership will also scale up localization and creation of component ecosystem & employment opportunities in India.”

Padget Electronics made headlines recently when it announced the launch of its smartphone manufacturing facility in Noida, Uttar Pradesh, dedicated to producing devices for the global technology giant Xiaomi. The Noida plant is built across 2.7 lac square feet and has an annual capacity of making 25 million units.

Brokerage firm ICICI Securities has assigned a ‘reduce’ rating to the Dixon Technologies stock with a target price of Rs 4,900 in a recently released report.

Dixon Technologies reported a consolidated net profit of Rs 113.36 crore for the second quarter of the financial year 2023-24, up 46.99 percent from Rs 77.12 crore in the year-ago period. The company reported an 27.83 percent YoY (year-on-year) rise in consolidated revenue from operations at Rs 4,943.18 crore against Rs 3,866.77 crore a year ago. Moneycontrol