Winning Bizness Sports Desk
Mumbai. The Indian government's schemes seem to be having an impact on Chinese companies. Chinese smartphones manufacturing company Xiaomi will now be manufactured in Noida, Uttar Pradesh. Padgett Electronics, a wholly owned subsidiary of Dixon Technologies India Limited, has said that it has entered into an agreement with Xiaomi for manufacturing smartphones and other related products. These smartphones will be produced in the manufacturing facility of Noida, UP. It is noteworthy that Dixon has been approved to receive incentives under the Central Government's Production-Linked Incentive (PLI) Scheme for mobile manufacturing. It currently produces phones for Reliance Jio, Motorola and Nokia. At the same time, Xiaomi is facing tough regulatory scrutiny in India.
"Pleased to partner with Xiaomi"
Earlier this year, Xiaomi had contracted India's Optimus Electronics Ltd to manufacture its Bluetooth neckband earphones. Earlier the company used to import earphones from China. Commenting on the deal between Xiaomi and Dixon, Atul B Lal, Vice President and Managing Director (MD), Dixon Technologies India, said, “We are extremely pleased to partner with Xiaomi, which is an iconic brand. We are happy and encouraged by the confidence given by them. We believe this collaboration will leverage our excellence, strong execution track record and Xiaomi's expertise and leadership in the Indian business ecosystem. This proves to be a milestone in the 'Make in India' initiative of the Government of India." He also said that we believe this is the beginning of a long and promising relationship, and there is immense potential to leverage our shared capabilities for continued growth.
Govt encouraging manufacturing ecosystem
The central government is encouraging smartphone manufacturers to include more local companies in their manufacturing ecosystem. This development comes after the two sides met at the office of Minister of State for Electronics and Information Technology Rajeev Chandrashekhar in July and announced plans to explore manufacturing and export possibilities. Chandrashekhar posted on the social media platform, Xiaomi India leadership met me today. Told them our expectations to increase exports, strengthen supply chain ecosystem and value addition in India and make all products data privacy compliant. Dixon will invest more than Rs 4 billion in the factory in three years. The factory is spread over 300,000 square feet or the size of six football fields and will mass produce Xiaomi smartphones.