Dixon's Padget Electronics secures IT hardware contract with Lenovo

13 Dec 2023 CW Team

The execution of the contract is contingent upon the signing of a definitive agreement between the two companies, as mentioned in a notice to the stock exchange. Upon finalisation, Dixon Technologies, an electronics manufacturing service provider, will be responsible for producing notebooks and laptops for Lenovo, which recently edged ahead of Dell to become the second-largest PC brand in the September quarter, according to IDC.

Atul B Lall, Vice Chairman at Dixon Technologies, expressed optimism about the partnership, stating that it would significantly boost India's manufacturing competitiveness. He highlighted Lenovo's global expertise and processes, anticipating that the collaboration would contribute to the localisation, creation of a component ecosystem, and the generation of employment opportunities in India.

The company aims to commence manufacturing for Lenovo in April 2024, starting at a newly inaugurated 2.7 lakh square feet facility before transitioning to a larger under-construction facility spanning 1 million square feet.

Lall emphasised the substantial nature of the contract with the global IT hardware giant and mentioned that the contract value and quantities are currently being finalised, with the process expected to conclude within the next 3-4 weeks. However, the specific details of the contract value were not disclosed.

He further elaborated that Padget would initiate localisation efforts by focusing on PCBA (printed circuit board assembly) manufacturing under this contract. The subsequent years will witness the gradual implementation of the localisation schedule outlined in the production-linked scheme.

Dixon Technologies has announced that its subsidiary, Padget Electronics, has secured a contract from Lenovo to manufacture IT hardware products under the revised production-linked scheme for the segment. The execution of the contract is contingent upon the signing of a definitive agreement between the two companies, as mentioned in a notice to the stock exchange. Upon finalisation, Dixon Technologies, an electronics manufacturing service provider, will be responsible for producing notebooks and laptops for Lenovo, which recently edged ahead of Dell to become the second-largest PC brand in the September quarter, according to IDC. Atul B Lall, Vice Chairman at Dixon Technologies, expressed optimism about the partnership, stating that it would significantly boost India's manufacturing competitiveness. He highlighted Lenovo's global expertise and processes, anticipating that the collaboration would contribute to the localisation, creation of a component ecosystem, and the generation of employment opportunities in India. The company aims to commence manufacturing for Lenovo in April 2024, starting at a newly inaugurated 2.7 lakh square feet facility before transitioning to a larger under-construction facility spanning 1 million square feet. Lall emphasised the substantial nature of the contract with the global IT hardware giant and mentioned that the contract value and quantities are currently being finalised, with the process expected to conclude within the next 3-4 weeks. However, the specific details of the contract value were not disclosed. He further elaborated that Padget would initiate localisation efforts by focusing on PCBA (printed circuit board assembly) manufacturing under this contract. The subsequent years will witness the gradual implementation of the localisation schedule outlined in the production-linked scheme.

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